The newly privitised Royal Mail staff have decided to stop working. The Royal Mail workers have voted to go on national 24-hour strike on 4 November. Staff were given free shares in the company only recently.
The government has given formal notice to the stock exchange that it plans to privatise the Royal Mail “in the coming weeks”.
The new Royal Mail will need to compete effectively in the private sector only if the regulator permits competition.
Government plans to sell-off the Royal Mail in the biggest privatisation for 30 years have sparked a mixed reaction in today’s papers.
- This does not affect the Post Office – although options on mutualisation will be considered. No Post Offices will close.
- A majority stake will be floated on the stock exchange
- The 6 day a week flat rate service is set in stone.
- 10% of shares available for employees, free to the employee, to either give them a cash windfall or a say in how the company is run.
There are some challenges to be overcome. First of all, the Communications Union is already opposed and will no doubt do what they can to disrupt the sale.
The Royal Mail has capped retailers supplies this month to 20% of a retailer’s annual allocation so limiting the number of stamps that can be purchased before the price rise at the end of the month when the cost of a first class stamp rises to 60 pence. Some retailers are running low as customers buy stamps in bulk before the price rise. Demand for stamps has increased after the announcement of the price rises at the end of last month.
The government is to go ahead with the privatisation or sale of Royal Mail.
Business Secretary Vince Cable made the commitment after receiving updated recommendations from the businessman Richard Hooper.
Postal workers have voted to accept a deal to settle the long-running dispute with Royal Mail over pay and working practices.
Workers voted by two to one to accept a deal agreed between the Communication Workers Union (CWU) and Royal Mail. The deal commits Royal Mail to retaining full-time staff, improved flexibility and a voluntary approach to any redundancies.
The union has agreed not to strike again before Christmas. Further talks will take place in December with the aim of finalising a deal by the end of 2010.
The national strikes have been called off until at least the New Year to allow for fresh talks between Royal Mail and the Union. Royal Mail deliveries should be free of any additional disruption over Christmas.
The Mail union accuses the Royal Mail of using agency workers as strike breakers to do the work of CWU members involved in the continuing UK-wide industrial dispute and is seeking an injunction preventing Royal Mail from using 30,000 agency workers.
Two more strike days have been announced. These are Friday, 6th and Monday, 9th November.
Unlike the current strikes, which have involved members in different roles striking on different days, the two new dates will be all-out strikes.