Privatisation of Royal Mail would be a “disaster” for the postal industry, according to the Communication Workers Union, which has vowed to step up its opposition to the sell-off at this week’s annual conference in Bournemouth.
And the CWU has called on Labour to renationalise the postal group if it wins the next general election.
Expressing their “total opposition” to the plans, the union set out its strategy to “reinvigorate” its campaign.
General secretary Billy Hayes said the union was sending a strong message to firms “circling” the Royal Mail by making it clear that privatisation was not necessary.
“Privatisation would be a disaster for this industry, and while there is life in this union we will continue campaigning to keep the post public.”
However, with privatisation pencilled in for autumn 2013, there would appear little that the CWU can do, other than call for industrial action – a move which would no doubt itself be branded a ‘disaster’ for the direct mail industry.
According to the FT, the offering is expected to fetch between £3bn and £4bn, depending on whether Royal Mail’s revenues. The latest step in improving the company’s attractiveness to potential suitors was Ofcom’s decision to allow the postal operator to set its own prices.
A flotation is likely to involve a sale of shares to the public as well as institutions, kicking off with a partial sell-off, with the rest sold later. However, a full sale at the outset has not been ruled out.
Royal Mail employees would get a stake of at least 10% when privatization is completed, while the Post Office network would remain in the public sector and may be mutualised.
One Royal Mail insider recently said: “We see no reason why this company should not be IPO-able. Royal Mail is viewed with a high level of affection by the public.”
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