CumbrianRam Posted September 12, 2013 Share Posted September 12, 2013 The government has given formal notice to the stock exchange that it plans to privatise the Royal Mail "in the coming weeks". BBC business editor Robert Peston said he expected the sale to take place in November. Employees will be given 10% of the shares, with the rest being offered to institutional investors and members of the public. Unions have already threatened strike action over the privatisation. The minimum amount members of the public can buy in shares will be £750. Free shares will be given to 150,000 UK-based Royal Mail employees, who will be able to apply for additional shares under an employee priority offer, with a minimum application of £500. Industrial action The Communication Workers Union (CWU) opposes the float and is about to ballot its members for strike action. The outcome of the ballot will be announced on 3 October. Royal Mail expects CWU members to vote for industrial action, with the first date available for a strike being 10 October. Dave Ward, CWU: "The future of the universal service is now in jeopardy" Moya Greene, chief executive of Royal Mail, said the privatisation of the company was now beyond doubt, and urged the CWU to come to an agreement with the Royal Mail, rather than going ahead with potential strikes. "Talk of a ballot for industrial action makes no sense when there is a significant three-year deal on the table and negotiations are ongoing," she said. The current deal offered by Royal Mail includes an 8.6% pay increase and is legally-binding in order to guarantee that it remains in place even after the company moves into private ownership. The CWU has already reject the deal. The union is concerned over the impact privatisation will have on jobs and conditions, as well as the future of Royal Mail's universal service. Business minister Michael Fallon sought to reassure people that the six-day-a-week universal service was protected. "It is the law - it's an Act of Parliament that was passed two years ago and only Parliament could ever change that," he told BBC News. "I can't think of any political party that would want to reduce the service that we all rely on." The government plans to sell a majority stake in Royal Mail, but it has said it will be flexible about exactly how big the stake will be, depending on market conditions and how much demand there is for the shares. More information is available at www.gov.uk/royalmailshares which is also where online applications will be once the offer opens. Private investors will also be able to apply for shares by post or through stockbrokers. Royal Mail has announced that "in the absence of unforeseen circumstances" it will pay a dividend of £133m in July 2014, saying it would have paid £200m if the business had been listed for the whole of its financial year. Robert Peston said that implied the business was worth around £3bn. As part of the privatisation, Royal Mail will take on £600m of loans from banks, with another £800m available if necessary. This will replace the loans it currently has from the government. The Post Office was separated from Royal Mail in 2012 and is not for sale. Business Secretary Vince Cable said: "HM Government is taking action to secure a healthy future for the company." "These measures will help ensure the long term sustainability of the six days a week, one-price-goes-anywhere universal postal service." But shadow business secretary Chuka Umunna said: "Ministers are pushing ahead with this politically-motivated fire sale of Royal Mail to fill the hole left by George Osborne's failed plan." "The government has not addressed the huge concerns which remain on the impact the Royal Mail sale will have on consumers, businesses and communities." http://www.bbc.co.uk/news/business-24058989 Link to comment Share on other sites More sharing options...
Boycie Posted September 12, 2013 Share Posted September 12, 2013 Bet Thatcher is doing a fire walk in celebration. Link to comment Share on other sites More sharing options...
ladyram Posted September 12, 2013 Share Posted September 12, 2013 Never be in her fan club but wasn't it her who said "I can't have the Queen's head privatised?". Anyway.. Will it work though? Will it make things cheaper? And why do I have to wait until the afternoon for my mail? And who remembers the days when there were 2 deliveries to houses everyday? 1st & 2nd post? Link to comment Share on other sites More sharing options...
uttoxram75 Posted September 12, 2013 Share Posted September 12, 2013 Another nail in the coffin of a once proud country. I am ashamed that my generation have allowed our kids and grandkids future to be sold off like an unwanted sofa on ebay. Whichever way you look at it the net result is that money will be moved from working people to fatcats in tax havens. Link to comment Share on other sites More sharing options...
ladyram Posted September 12, 2013 Share Posted September 12, 2013 It is a shame Uttox, the Royal Mail is an institution but it's gotten very expensive, even for a stamp. Woman on RD this morning sent her passport Next Day Delivery from the Isle of Wight to London and she had to pay £17. Bloody pricey that is. Even the Post mistress checked 3 times that it was right. Link to comment Share on other sites More sharing options...
Day Posted September 12, 2013 Share Posted September 12, 2013 My postman is useless Link to comment Share on other sites More sharing options...
ladyram Posted September 12, 2013 Share Posted September 12, 2013 All ours fetches is bills and junk. Link to comment Share on other sites More sharing options...
Boycie Posted September 12, 2013 Share Posted September 12, 2013 My postman is uselessours has no sense of humour. Link to comment Share on other sites More sharing options...
Day Posted September 12, 2013 Share Posted September 12, 2013 Ours doesn't know how to put letters in the correct letterbox Link to comment Share on other sites More sharing options...
Boycie Posted September 12, 2013 Share Posted September 12, 2013 Ours doesn't know how to put letters in the correct letterboxsurely that's high on the list of required attributes? Link to comment Share on other sites More sharing options...
ladyram Posted September 12, 2013 Share Posted September 12, 2013 Ours us a florest fan. Link to comment Share on other sites More sharing options...
Day Posted September 12, 2013 Share Posted September 12, 2013 surely that's high on the list of required attributes? You would think so. Make sure you are on the correct street and put the envelope through the door with the matching number. Doesn't need a degree or several GCSE's, you even get push carts now so you don't have to carry the bag. Must be the easiest job, reckon the Millwall kit man could do a better job Link to comment Share on other sites More sharing options...
Boycie Posted September 12, 2013 Share Posted September 12, 2013 Maybe the stench of cat ***** distracted him? #justsayin Link to comment Share on other sites More sharing options...
Day Posted September 12, 2013 Share Posted September 12, 2013 Don't go out the front #JustReplying Link to comment Share on other sites More sharing options...
uttoxram75 Posted September 12, 2013 Share Posted September 12, 2013 It is a shame Uttox, the Royal Mail is an institution but it's gotten very expensive, even for a stamp. Woman on RD this morning sent her passport Next Day Delivery from the Isle of Wight to London and she had to pay £17. Bloody pricey that is. Even the Post mistress checked 3 times that it was right. Bloody hell LR, thats the whole point! They've put the price up so its attractive for privatisation. Its got to make huge profits now for senior managers bonus's and shareholders. Gas, Electric, Water, Rail......... Link to comment Share on other sites More sharing options...
Boycie Posted September 12, 2013 Share Posted September 12, 2013 Will Labour renationalise? Will they bogger. Link to comment Share on other sites More sharing options...
PrivateDerby Posted September 13, 2013 Share Posted September 13, 2013 ours has no sense of humour. What do you do to him? Link to comment Share on other sites More sharing options...
ladyram Posted September 13, 2013 Share Posted September 13, 2013 Bloody hell LR, thats the whole point! They've put the price up so its attractive for privatisation. Its got to make huge profits now for senior managers bonus's and shareholders. Gas, Electric, Water, Rail......... We'll just have to wait and see if prices will fall, won't hold me breath though. Link to comment Share on other sites More sharing options...
Boycie Posted September 13, 2013 Share Posted September 13, 2013 What do you do to him?grab his hand through the letter box while barking. I think running down the path and humping his leg was a prank too far. Anyway, like I said, no sense of humour. Link to comment Share on other sites More sharing options...
rams71 Posted September 13, 2013 Share Posted September 13, 2013 8.6% pay increase !! Link to comment Share on other sites More sharing options...
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