Every Royal Mail staff member to get £1,500 shares windfall

[POSTMAN]

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Every Royal Mail staff member to get £1,500 share windfall when company floats on stock exchange

140,000 workers from postmen to managers expected to scoop a windfall
Government has promised ten per cent of the company to employees
CWU is bitterly opposed to the privatisation, fearing future pay cuts

Every postal worker in Britain will be given around £1,500 of shares in Royal Mail when it floats on the stock market, the Business Minister will say today.


It will be the largest employee share scheme for 25 years with around 140,000 workers from postmen to local delivery office managers expected to scoop a windfall.


In his first speech on the controversial privatisation of the country’s postal service, Michael Fallon will today pledge to make the share handout ‘as attractive as possible.’


He is keen the share handout is structured in a way that all postal workers benefit, rather than just allowing the executives to walk away with millions.


But he will warn the militant postal union, the Communication Workers Union, that they must ‘engage’ with the Government - or the deal could be scuppered.


The CWU is bitterly opposed to the privatisation of Royal Mail, a deal which it fears will lead to price rises, pay cuts and the destruction of the service.


In a protest against the privatisation plans, the union is currently plotting to boycott the handling of any mail which has not been sent through Royal Mail, but one of its rivals, such as TNT.


Speaking at think-tank Policy Exchange today, Mr Fallon will call on the CWU to ‘put ideology aside’ so that their members ‘do not lose out.’ He will say: ‘I am determined to do the right deal for them.


‘Royal Mail employees spend their working lives making the post run on time, delivering to far flung parts of the country from Lands End to John O’Groats. They are absolutely central to the future success of the company.’


Under the proposals, the Government has promised to give ten per cent of the company to its workers when it is privatised.

A stock market flotation is Mr Fallon’s preferred option, and a deal valuing the company at between £2billion and £3billion is expected to take place before April 2014.



Royal Mail delivery staff
Workers' windfall: The Communication Workers Union are opposed to the whole privitisation but Mr Fallon has told the union it must engage with the deal

But a major sticking point for the union surrounds whether the shares are given to postmen for free, or are sold at a discounted price.


In today’s speech, Mr Fallon is not expected to make clear which option is on the table. They should also get extra cash from the shares, known as a dividend, every six months.


He will say: ‘People should be in no doubt, whether the shares are discounted, or free, it is a hugely significant commitment from the Government to Royal Mail’s workers.’


Union bosses have already made clear their trenchant opposition to a deal which would require postmen to pay even a penny for the shares.


Billy Hayes, general secretary of the CWU, said: ‘The idea that postal workers are going to sell their soul for a ten per cent stake in the company is not going to work.


Frances O'Grady the General Secretary of the TUC has warned that privatising the Royal Mail would be a 'disaster'
Union trouble: Frances O'Grady the General Secretary of the TUC has warned that privatising the Royal Mail would be a 'disaster'

‘Even less so if the Government expects postal workers to put up their own cash in order to buy shares.

‘Postal workers know that privatisation would mean the break-up of the company, more job losses, worse terms and conditions and attacks on their pensions.


‘It would be a wrecking ball to the industry they work in. Why would they sign up to that for a one-off share-scheme when their pay, conditions and job security for their rest of their career could be badly affected by the consequences?’


Anybody from families to pensioners will be allowed to subscribe for shares in the Royal Mail flotation.


It is too early to say how much they will cost or how many shares people will be able to buy in the company which has throughout its history had just one shareholder - the Government.

Royal Mail has been gearing up for privatisation for months, a deal which Margaret Thatcher refused to do saying she was ‘not prepared to have the Queen’s head privatised.’


Its £12billion pension black hole has been dumped on the taxpayer, and a first-class stamp has jumped from 46p to 60p after the regulator scrapped the limited on how much it can be increased each year.

[fishtank]

But he will warn the militant postal union, the Communication Workers Union, that they must ‘engage’ with the Government - or the deal could be scuppered.

Not the sharpest knife in the drawer is he?

[borders]

well I don't have a spare few quid to buy some discounted shares , so the fact we don't know yet whether they are free or not is annoying . and not wishing to sound ungrateful , but seriously 1500 quid not a great amount in this day and age. we will be regretting down the years, selling our terms and conditions to Privatisation for 1500 quid ????

[fishtank]

well I don't have a spare few quid to buy some discounted shares , so the fact we don't know yet whether they are free or not is annoying.

I can pretty much tell you 99% that they will either be free or it might involve some kind of salary sacrifice scheme or both.
Either way it's unlikely you will have to fork out up front.
It's a bribe and bribes don't really work if you have to pay the bribe yourself.

[borders]

I agree Fishtank , not much of a bribe if you have to pay for them yourself !! but even a salary sacrifice is a bit of a cheek if you ask me.

[stephen500]

Years ago in my office they sold a 20 min break for around £150. For some of them that was 20 to 30 years of 20 min breaks! So for £1500 a lot of them would sign up. I would not pay money for shares, I don't have any! I wonder if some one with one months service would get the same as some one with 20 years service?
Personally it's like waiting for a slow death, privatisation and pensions! Now where is that finish line

[stephen500]

I agree Fishtank , not much of a bribe if you have to pay for them yourself !! but even a salary sacrifice is a bit of a cheek if you ask me.

Oh believe me it will be a salary sacrifice!

[borders]

agree Stephen , a slow, slow death. the pension problem so confusing as it is , just makes you wish your life away. you cant wait to get your hands on it before they erode and steal some more of it . very annoying and stressful as you cant do a lot about it

[stephen500]

I refuse to let them get me! Myself and my wife plan to sell our house if need be. Then buy a caravan to live in. The equity from the house will keep us going. I will NOT stop at Royal Mail past 60 for whatever reason. I started work at Royal Mail at 16 and 44 years work is enough for any one. So roll on death, retirement or redundancy.

[borders]

good luck to you and your wife Stephen . unfortunately its 67 before I get my state pension but like you I am off at 65 regardless. loads of money is an obsession with so many people, its free time for me that's more important.

[stephen500]

good luck to you and your wife Stephen . unfortunately its 67 before I get my state pension but like you I am off at 65 regardless. loads of money is an obsession with so many people, its free time for me that's more important.

Now here is the plan and this is subject to some one stealing my pension!
I am 52 at present.
If I make it to 60 then take pension and lump sum and divide lump sum by 7 years and drawing down a weekly income to supplement pension.
If I make it to 55 and am made redundant around then, then do the same (but with less!)
If I get evr before 55, then use evr to clear debts and aim to get to 55 before drawing pension.
Plus with all of the above consider selling house and using that as an income.
Oh and there is death as well, well that's ok for my wife (at present unless they change it) because she gets death in service and can have a lovely life.
How any one in this industry can work past 60, 65, or 67 is beyond me.
Years ago it was enjoyable to work for Royal Mail.
Now every day is just a day nearer the winning post.

[NWpostie]

If it does happen, while avoiding selling out any employment rights, it would be best to hold on to the shares, the dividends is worth more in the long term, avoid selling to the carpet baggers which will no doubt crop up in the wake of any privatisations or demutualisations, sell only if you need the money urgently otherwise hang on to them, if you sell remember they will go into a general pot to be brought up by asset management companies or major corporations to form a big bloc even a controlling interest of the Company.

I am not looking forward to the privatisations, we have successfully fought them off in the past, however this time, it looks inevitable and we must try to protect our interests as best as we can and keeping hold of the shares is one way of doing it.

The devil is in the details, will these shares be held in trust by the Union and who decides what happens to them or will we individual Posties be given share in their own right, which would entitle you go to attend share holder meetings and vote on motions, appointments, approve auditors reports, this is one of the few advantage of having shares.

[borders]

I can see where you are coming from NW , but I doubt whether 10 % of the shares will give us too much influence in the future direction of the company. hence the reason why we only get 10% I guess !!

[borders]

this is one of the replys underneath the article , seems the public have finally got wise to what our Capitalist Elite have been up to over the years.


"Since I am a British taxpayer and the Royal Mail is where my taxes have been going why would I want to buy twice something that is already mine ? Seriously, this is the same trick that was pulled when the gas, electricity and GPO were sold from underneath their owners, the British public - and the same "bribe" techniques being employed. What we will actually end up with are a large number of unemployed postal workers (who will then need to be supported through the benefits system, instead of contributing by being employed and paying tax) - and a postal service that will rapidly become very expensive ( as with water, gas and electricity). Are we really going to allow ourselves to be conned yet again, while a handful of people make personal fortunes from this "cunning plan" ?

- cestrian , chester, United Kingdom, 29/4/2013 12:12

[hans solo]

tell them where to shove their shares
lets engage with mgmt over colleague share fiasco rem one month and the whole company was worth jack s**t
dont be fooled again people the scheme isnt designed for working class to get anything out off it
quick quid for years of private servitude ie SLAVE LABOUR tell them where to go make a stand