Government confirms 10% of Royal Mail shares for employees

[TrueBlueTerrier]

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At least 10% of the Royal Mail will be employee owned when its part-privatisation is rolled out, the government has confirmed.

The move was confirmed as the business minister Michael Fallon formally announced that the business was to be publicly sold off and despite comparisons to the years of privatisation under Margaret Thatcher's government, it has been largely welcomed by the employee ownership sector.

Fallon said that while the government was aiming for shares to be sold off publicly, at least 10% should be reserved for employees so that they could share the company's success. He added that this was part of helping to drive stronger staff engagement.

As WSB previously reported the government had suggested a 10% ownership stake in the business when a report was published in March.

A BIS spokesman told WSB that it was the government's intention to complete a deal to sell the Royal Mail this financial year.

Fallon said that the government favoured the attraction of an IPO and that so far there had been positive investor feedback. However he mentioned that all options would remain open and if an IPO was not viable the option of a private sale would be pursued.

Ifs Proshare special adviser Phil Hall welcomed the decision to give staff at least 10% of a privatised Royal Mail.

"The coalition government should be commended for honouring their commitment to give at least 10% of the shares in a privatised Royal Mail to employees. However, we strongly urge the government - as well as any potential buyer of Royal Mail - to ensure that all employees have access to HMRC approved all-employee share plans instead of wasting time and money constructing a new employee share plan specifically for Royal Mail," he commented.

"Implemented correctly, employee share ownership at Royal Mail could help reduce absenteeism and staff turnover, increase productivity and provide a very useful savings and investment vehicle for many thousands of workers."

[fishtank]

As WSB previously reported the government had suggested a 10% ownership stake in the business when a report was published in March.

Do these guys bother with research?
The 10% minimum employee stake was built into the Postal Services Act two years ago.
Fallon spins it as his personal idea like some kind of political Santa Claus and these "journalists" just buy it without even googling the Postal Services Act.
Fuckety f**k off Fallon.