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Postal workers from across the country are to meet with MPs ahead of the first debate in Parliament on plans to privatise Royal Mail.
Under measures included in the Postal Services Bill private buyers will be allowed to own up to 90 per cent of Royal Mail, at least 10 per cent of the shares will go to its employees while the Post Office may be mutualised.
Business secretary Vince Cable has hailed the proposals as representing the largest employee share scheme of any privatisation, larger than British Telecom, British Gas or British Airways.
Cable has argued the Bill gives employees a stable company to work for and a secure pension while removing the risk to taxpayers of an expensive bail out.
The Bill also gives responsibility for the regulation of the postal services sector to Ofcom.
However plans to privatise any part of the Royal Mail are deeply controversial and ahead of the Bill's second reading today postal workers will meet with MPs to explain why the Communication Workers Union (CWU) will oppose the move.
Billy Hayes, the general secretary of the CWU, has said he believes the coalition is pursuing the plan out of "ideological reasons" rather than necessity.
And he said polls showed 60 per cent of the public wanted to keep the Royal Mail in public hands, while only 15 per cent wanted to see it wholly privatised.
In his political memoirs Lord Mandelson attributed the failure of the previous Labour government to achieve similar reforms largely to the opposition of the CWU, who he said launched a "furious campaign" against their legislation and warned Labour MPs they would withhold support from candidates in marginal seats who supported the Bill.
"The problem was the politics, or more specifically the CWU," Lord Mandelson writes. "The union launched a furious campaign against our intention to 'privatise the Post Office.
"The CWU began to lean on Labour MPs to oppose the reforms and to warn that they would withhold support from candidates in marginal seats who backed the government's plans.
"That was no empty threat. The CWU was one of Labour's largest union sponsors, donating hundreds of thousands of pounds to the national and local coffers."
Article Comments
Privatisation is not necessary. Resolving Royal Mail's pension deficit and addressing regulation issues would provide over £400 million annually for the company to plough into services.
There are more cost effective options to improve Britain's postal industry but this government is ideologically blinkered.
Billy Hayes, general secretary, CWU
27th Oct 2010 at 5:20 pm
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