Excite

Royal Mail faces job losses after privatisation

  • Getty Images

More postal workers are set to lose their jobs under the controversial privatisation of the Royal Mail. With 50,000 jobs already axed over the last decade, there is fear and uncertainty throughout the company’s 150,000 employees.

More than 1 million people have applied for shares in the soon to be private company with over 12 billion pounds being offered for a limited number of shares. And yet in a written submission to Parliament on Wednesday, the Royal Mail said "The company will employ fewer people in the future, whoever owns it."

Moya Greene, Royal Mail's chief executive, who earns a 7 figure salary said that the company needs to be "sized appropriately for the traffic we have to process".

It threw out a potentially meaningless platitude by saying the Royal Mail "remains committed to the overarching objective of achieving this without compulsory redundancies".

"Over the past decade, the postal services sector has changed dramatically. A decline in mail volumes has coincided with the liberalisation of the market and the emergence of competition. In recent years, we have seen a significant increase in the number of parcels being sent. All of this has meant a difficult process of change for our people.

"Many of Royal Mail's employees have seen changes to their working practices as the company has adapted its operations to the changed mix of mail. Change will continue and the company will employ fewer people in the future, whoever owns it."

Despite growing profits in the public sector, the government remains determined to sell the company off, with 96% of workers against the move.

"Privatisation will allow the company to innovate, invest, improve our services, win new business, deliver the high-quality universal service, and continue to be a very substantial employer in the UK”, said the government.

Up to 70 % of the new company’s shares will be floated tomorrow and are expected to rise within seconds as a flurry of speculation kicks in. The government is set to receive approximately £2bn from the sale, with Labour claiming that they have undervalued it by hundreds of millions of pounds.

United Kingdom - Excite Network Copyright ©1995 - 2018