Govt plans sweetener for posties

The Government is attempting to get postal workers ‘on side’ over the privatisation of Royal Mail by handing each worker about £1,500 of shares, despite union opposition to the sell-off.
In his first speech on the issue, Business Minister Michael Fallon will today pledge to make the share handout “as attractive as possible”.
The sell-off, which will rival the privatisations of British Gas and BT in the Eighties, will be the largest employee share scheme for 25 years with around 140,000 workers expected to scoop a windfall.
It is understood Fallon will warn the postal union, the Communication Workers Union, that they must engage with the Government – or the deal could be scuppered.
The CWU is already planning industrial action against ‘final mile’ deliveries for the likes of TNT in protest at private firms cherry-picking lucrative business, a move which will hit 40% of deliveries.
Speaking at think-tank Policy Exchange, Fallon will call on the CWU to put ideology aside so that their members do not lose out.
A stock market flotation is the preferred option, and a deal valuing the company at between £2bn and £3bn is expected to take place before April 2014.
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.
However, Fallon is not expected to make clear which option is on the table. 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.”

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