Royal Mail will be old on the London Stock Exchange. This is what Business Secretary Vince Cable has just confirmed.
In his words, the public will be given the chance to buy shares and employees would receive 10% of shares for free. Because of this sale, business is expected to be valued at £2bn-£3bn.
Members of the Communication Workers Union (CWU) threatened with strikes as they are strongly opposed to the privatisation.
“Now the time has come for government to step back from Royal Mail, allow its management to focus wholeheartedly on growing the business and planning for the future,” Mr Cable said in a statement to the House of Commons.
According to him, the aim of this step was to take care after the Royal Mail’s future. These changes would allow employees get free shares and take a steak in the business. By the way, do you need a shareholders agreement template?
Private operators such as TNT and DHL are pointed out as possible buyers.
Business Minister Michael Fallon said that through private capital Royal Mail will quickly grow.
Royal Mail is adopting its work so that it pays more attention on the delivery of parcels than of letters.
After many years of losses, last year Royal Mail doubled its profits exactly because of a boom in parcel delivery.
Mr. Fallon received a letter from the CWU threatening with strike action in case the government did not think again about the privatisation.
CWU general secretary, Billy Hayes, said: “Nobody outside of government and their potential investors wants their postal service sold. The public consistently oppose the sale and recently 96% of workers voted against.”
The current idea for changes was mooted under the last Labour government.
According to Chuka Umunna MP, Labour’s shadow business secretary said there were still many unresolved issues so the government needn’t hurry that much.