Despite widespread protests regarding pay rates for posties, the Royal Mail will be listed on stock markets as soon as ministers give the sale the green light. The Royal Mail’s sale may be announced alongside the sale of shares in Lloyds Banking Group by the government.
Posties have responded negatively to plans to sell the Royal Mail, protesting the lack of pay guarantees issued by the government. Many of those employed by the Royal Mail are concerned that their wages could decrease after the service is listed on the stock exchange.
The government has proposed a £2,000 payment to postal workers as the service is sold. Investors in the Royal Mail, which will be listed with £3 billion worth of shares available, may be given 50 percent of annual profits in the form of dividends.
Plans to float the Royal Mail on the stock market have been controversial, with many of the service’s employees objecting to the sale. Many believe that the Royal Mail has been made significantly more efficient under the leadership of Moya Green.
The service’s financial improvements have been accompanied by a rise in the cost of stamps that’s frustrated the public, and a pension scheme for employees that’s now managed entirely by the government.
While the government has not committed to privatising the service, speculation is pointing towards a ‘probably’ commitment later this week. The 150,000 staff have been promised a £2,000 payout in the form of shares in the private Royal Mail.
Investors will face a serious pay dispute between Royal Mail workers and high-level management. Unions have rejected an 8.6 percent increase in wages that would take place over three years and continue to battle with management for better wages.
The government also faces strong public opposition to the sale. 70 percent of those surveyed by the Sunday Times said that they did not support the Royal Mail being privatised.
