Is The Privatisation Of Royal Mail A Good Thing?

[TrueBlueTerrier]

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The financial crisis that hit not only the UK, but the entire world, in 2009 was one of the worst for many years. The current government is attempting many different things to kick start the economy and drive the UK PMI upwards. This is the same all across the board an includes sweeping cuts and big changes, especially to the public sector.
In an attempt to breathe new life into a struggling company, and also maximise profit and efficiency, the Royal Mail is set to be privatised. This is a decision that was taken in September 2010 after seberal months of evaluation. This is a national institution that has provided these mail logistics and distribution services for coming up to 500 years, and a change to could mean big things for the country.

THis decision was made for a number of reasons:
- Although the Royal Mail company has been showing a profit for the past few years, the penion scheme it runs is still in deficit to the tune of over £8 billion.

- The standards that RM operate to currently are a 93% on-time rate for first class delivery. This may sound good but the industry average is 98.5 and above. This means over 7 million letters are late every year.
Obviously, there are pros and cons to this, as in the case of many large takeovers. On the pro side the amount of investment a private company would bring would mean a rise in efficiency and a more modern mail service. It may also bring with it a small tax break, as the financial weight would be lifted from the taxpayer and put on the investor. On the ‘con’ side, the increase in mail efficiency would doubtless bring with it a price increase. This would mainly be down to the fact that Royal Mail is a public company and therefore exempt from VAT charges, but some extra cost would be brought down from the new company. The unfortunate by-product of all this would almost certainly be job losses. The Communications Workers Union (CWU) has pledged to fight any job losses and privatisation, and they are notoriously tough to bargain with.

The final point is that whoever sets up as a mail and logistics solutions service won’t be able to use the ‘Royal’ part as it will no longer be owned by the Queen. Sadly the Royal mail as we know it today would be no more.

[ziko]

Dont be blue guys. On the positive side when your children are old enough to work at least there will be no more companys for Thatchers children to Privatise.
So they can work trouble free until the Conservatives let them earn thier retirement at 85

[DavidUK]

Yes, and personally I cannot wait for this. The way the Royal Mail is run at present is abysmal and the quality of managers thoroughly shocking. Nothing will change for the better until then. Staff having a stake in the business in a similar way to The John Lewis Group is also to be welcomed. It's a miracle that we actually make any profit at all, and new ownership will ensure the company becomes much more efficient, with the staff benefiting accordingly.

Those staff who work hard already will have nothing to fear. Every office has slackers and those who don't do their fair share, and yet under present management nothing is done about these people. Indeed, they are treated far more favourably than the majority who do a good job!! A clear case of discrimination of the majority!! Under private capital the only people who would need to worry woould be the aforementioned malingerers.

[fishtank]

Yes, and personally I cannot wait for this. The way the Royal Mail is run at present is abysmal and the quality of managers thoroughly shocking. Nothing will change for the better until then. Staff having a stake in the business in a similar way to The John Lewis Group is also to be welcomed. It's a miracle that we actually make any profit at all, and new ownership will ensure the company becomes much more efficient, with the staff benefiting accordingly.

Those staff who work hard already will have nothing to fear. Every office has slackers and those who don't do their fair share, and yet under present management nothing is done about these people. Indeed, they are treated far more favourably than the majority who do a good job!! A clear case of discrimination of the majority!! Under private capital the only people who would need to worry woould be the aforementioned malingerers.

So...level of service and terms and conditions for staff improve after privatisation.
Care to throw up an example or two?

[axeman]

don't be silly foo*s like this are simply to dim to realise the outcome of a private royal fail probably thinks if he keeps his nose brown then he's in with a chance of cleaning the 'bosses' shoes (yes boss sir). blinkered by bullshit and bred for greed, stupid managers yes but what makes you think you are better

[BELIAL]

Yes, and personally I cannot wait for this. The way the Royal Mail is run at present is abysmal and the quality of managers thoroughly shocking. Nothing will change for the better until then. Staff having a stake in the business in a similar way to The John Lewis Group is also to be welcomed. It's a miracle that we actually make any profit at all, and new ownership will ensure the company becomes much more efficient, with the staff benefiting accordingly.

Those staff who work hard already will have nothing to fear. Every office has slackers and those who don't do their fair share, and yet under present management nothing is done about these people. Indeed, they are treated far more favourably than the majority who do a good job!! A clear case of discrimination of the majority!! Under private capital the only people who would need to worry woould be the aforementioned malingerers.

Sieg heil The only solution is to strengthen the strain

[TrueBlueTerrier]

Yes, and personally I cannot wait for this.

Well you'll have to - best estimates are that privatisation won't happen till 2012 at least.

The way the Royal Mail is run at present is abysmal and the quality of managers thoroughly shocking.

The one part of your post I agree with.

Nothing will change for the better until then. Staff having a stake in the business in a similar way to The John Lewis Group is also to be welcomed.

Well maybe that would be OK but as we are only going to get 10% it's not even close to being a John Lewis style shares system.

It's a miracle that we actually make any profit at all,

Depends what the message is - profit has been yo-yoing with the same frequency as privatisation being mentioned, and when we dare to voice our concerns. Could it be a coincidence - well maybe bt its a bloody big one if it is.

and new ownership will ensure the company becomes much more efficient, with the staff benefiting accordingly.

So TNT laying off all full timers and DP saying the minimum wage is too high are part of the staff benefits we can look forward too.

Those staff who work hard already will have nothing to fear. Every office has slackers and those who don't do their fair share, and yet under present management nothing is done about these people. Indeed, they are treated far more favourably than the majority who do a good job!! A clear case of discrimination of the majority!! Under private capital the only people who would need to worry would be the aforementioned malingerers.

Blimey not wearing a dark shirt are you. If you really believe there are malingerers then you can already do something about it - bung in a grievance. But of course if these mailingerers are really people coming in on time. taking their break following all H&S instructions and not willing/able to work overtime then that puts a different light on it. Only you, or your colleagues really know which camp they fall into and if they are lazy and management are not doing anything then put in a grievance and stop relying on other people to change things.

[andy2007]

Is the Privatisation of Royal Mail a good thing?
NO!

Unless of course, you're planning to buy shares. In which case, it'll be a great thing in the short term, as you'll make a lot of money. But in the medium to long term, it'll be a disaster. Because once the Asset Strippers have finished, RM will be on it's knees (we're not far from that already!), and will no doubt go to the wall.

There are many, who believe that, that can't happen. Because the Government won't let us go under. But the fact is, that there will come a time, when the deterioration of our service, will reach a point, where it's possible for a real, competitor, to go into direct competition with us. That's from colletion, to delivery. At the moment, there's no-one else who'll even ATTEMPT to do that, because they stand no chance of matching us for price and service. Despite the Government Propoganda to the contrary. But once we end up with one or two deliveries a week, and the majority collecting their own Mail. Well, there's nothing to stop one of the leeches setting up their own version, is there?

For those who're thinking that it won't come to that: Just look at the current news stories about people complaining about the cost of collecting their own Mail. And the fact that dropping Saturday deliveries has been, being considered for some time now. First Saturday. Which day next?

[fishtank]

A note for the greedy...there is no guarantee that any individual employee will receive any shares.
The bill talks about shares being owned by or on behalf of the employee share scheme.
It also states...

“Employee share scheme” means a scheme for encouraging or facilitating the holding of shares or share rights in the company (or companies in the same group as the company) by or for the benefit of persons who are or include employees of the company.

It may be that the shares are held in perpetuity in the scheme and current staff simply receive a "dividend"....if....the company makes a large enough profit and the board decide a "dividend" is due.