Royal Mail reveals free employee shares eligibility

[TrueBlueTerrier]

http://www.wsandb.co.uk/wsb/news/228942 ... ligibility" onclick="window.open(this.href);return false;

All Royal Mail employees eligible for free shares under any floatation will receive the same number irrespective of their position or how long they have worked for the company, the organisation reveals.

Part-time staff would receive a pro-rated allocation while staff must have joined before July 10 2013 and still be employed at floatation, the group's reward and recognition director Mark Sprague added.

He also noted that more Royal Mail employees would be able to participate in the free share scheme than any other major UK privatisation for almost 30 years, meaning that employees would have a meaningful stake in the company and its future success.

However, in an apparent shot at trade unions which have largely opposed the floatation, Sprague warned that the whole process was dependant on the stock market listing occurring and if that did not take place, employees would not receive any shares in the company.

Trade unions have criticised the move and threatened strike action should their members' views not be taken into account.
The Communication Workers Union (CWU) called the floatation plans "illogical and impractical" while Unite joined up with the CWU in a Save our Royal Mail campaign.

In his statement, Sprague confirmed that "the overwhelming majority of Royal Mail's 150,000 employees in the UK, including employees working in Parcelforce Worldwide, will be eligible for free shares if they have worked for the company from July 10 2013 and continue to do so until flotation".

As WSB reported in July, the government confirmed it was planning to offer employees 10% of all shares in the postal service for free as part of a privatisation.

Mark Sprague's statement in full
The government recently announced that it intends to dispose of a majority of its shares in Royal Mail through a flotation of the company on the London Stock Exchange. It will automatically give 10 per cent of all the shares in the business free to eligible Royal Mail employees in the UK at the time of the flotation. This is the largest free stake of any major UK privatisation.

The overwhelming majority of Royal Mail's 150,000 employees in the UK, including employees working in Parcelforce Worldwide, will be eligible for Free Shares if they have worked for the company from July 10th 2013 and continue to do so until flotation.

Eligible employees will automatically receive an equal number of shares, irrespective of their grade. There will be a pro-rata allocation for part-time employees. They will have the option to opt out of the scheme if they wish.

We expect that the Free Shares will be given to employees on the date when Royal Mail shares start trading on the London Stock Exchange. However, the provision of free shares is dependent on the company being floated on the London Stock Exchange. If this transaction does not take place, employees will not receive any shares in the company.

More Royal Mail employees will be able to participate in the free share scheme than any other major UK privatisation for almost 30 years. This will mean that our employees will have a meaningful stake in the company and its future success.

[UnhappyGremlin]

This will mean that our employees will have a meaningful stake in the company and its future success.

Think we're more concerned about whether or not we'll have jobs, and for those that do manage to survive the axe, will they pay for it with their pension, and a severely worsened working life?

[Glenno]

This will mean that our employees will have a meaningful stake in the company and its future success.

Think we're more concerned about whether or not we'll have jobs, and for those that do manage to survive the axe, will they pay for it with their pension, and a severely worsened working life?

Good post UHG

[Brain Fury]

Stopping the share offer does not mean stopping privatisation. IMO the alternatives would be worse.

[UnhappyGremlin]

Stopping the share offer does not mean stopping privatisation. IMO the alternatives would be worse.

Nobody said it did.
And for once, I agree with you, the alternatives would be worse.
If, and I repeat IF, privatisation happens, then I'd prefer the IPO. (Still think we would end up in the same state eventually, but it would take longer this way).
But there is no guarantee privatisation will happen, and I'd rather it didn't.

[fishtank]

Stopping the share offer does not mean stopping privatisation. IMO the alternatives would be worse.

You would need to know what the real alternatives were first.
All we have at the moment is propaganda from all directions.

If you believe the hype the present board are making a pretty good job of running the company and an IPO is unlikely to change the board structure anyway so that really just leaves access to capital and whether we need to be in the private sector to achieve that.

[Brain Fury]

The problem is that behind any business reasons for privatisation is the political dogma of the Tory party and I don't believe for a second that they will miss the opportunity to introduce private capital to Royal Mail. Even if the CWU proposal for a non-for-profit company like Network Rail is technically possible, I suspect it's the last thing the Tories (and probably any other Government) would want. In the absence of an IPO my fear would be the Government selling a block stake in the company to a private investment company or still worse to one of our competitors - then you really would see asset stripping

[borgpicard]

theres that fu cking word again ` pro rata` fu ck off we all do the same job, and now most p/t work on f/t jobs any way, give that canadian pro rata bonus for hours worked , ????

[Lincox]

Yes, seems odd that someone who joined on 10th July will receive more shares than someone who has grafted part time for many many years and has never been given the opportunity to go full time. That,s not me by the way, but there must be many in that position.

[LinChong]

Royal Mail shares will be worthless. After flotation, management will fight with Ofcom, the USO will not be maintained and politicians will get pressure. Royal Mail will go into receivership, share holders will lose their money and the new Labour government will make Royal Mail a not for dividend private company limited by guarantee like Network Rail.

This is why there is no advertising campaign for the shares. The government do not want a repeat of Railtrack, Royal Mail shares will be sold with more warnings than cigarettes. Put your money on the horses, it's more fun.

[barbario]

This will mean that our employees will have a meaningful stake in the company and its future success.

Think we're more concerned about whether or not we'll have jobs, and for those that do manage to survive the axe, will they pay for it with their pension, and a severely worsened working life?

Exactly.As far as i am concerned ,the Government can stick their shares where the sun doesn't shine.What good are shares when our pensions will be hit again and we could be out of a job in three years time.