THE Communication Workers Union (CWU) yesterday called for a new ownership model for the Royal Mail, prioritising workers and customers, while raising concerns about a possible takeover from a foreign investor.
Royal Mail’s owner, International Distributions Services, has rejected a £3.1 billion takeover approach from Czech billionaire Daniel Kretinsky, already the firm’s largest shareholder, with analysts expecting a second bid as soon as next Thursday.
CWU general secretary Dave Ward told delegates in Bournemouth: “Handing ownership of Royal Mail to a foreign private equity investor cannot be right.
“Royal Mail needs a new ownership and governance model with its focus on delivering a postal service for workers and customers, not one simply about shareholder payouts and running down conditions.”
Delegates unanimously resolved that in the event of takeover, it would oppose attempts to break up the company, introduce franchising and outsourcing to Royal Mail or cut back on deliveries.
The union added it would campaign against any “raid” on a pension surplus it estimated was worth between £1.1bn and £1.4bn.
Mr Kretinsky has built up a 27.5 per cent stake in Royal Mail through his investment vehicle, Vesa.
Mr Ward revealed that Vesa told him and deputy general secretary Martin Walsh a takeover bid was “absolutely not” its approach in December.
“What is it that’s changed from then to now?” asked Mr Ward, suggesting the tycoon may not see Ofcom and Royal Mail’s plans to reduce its Universal Service Obligation to deliver letters to all UK addresses over six days as going far enough.
He said: ”I think whatever the current [Royal Mail] board are saying at the moment, they are also going to be thinking: ‘how do we get some money out of this and how do we end our careers [taking up seats] in the House of Lords with a big fat pay cheque?’”
“This guy has a lot of money. He’s already got a major interest in the UK energy market, that’s where he made his money across Europe.
“There’s probably a higher level debate going on in the background about the way of UK investment.”
The union would continue to support the renationalisation of the Royal Mail, but he realised there would not be a lot of money for any incoming Labour government to spend.
Mr Ward said privatisation had failed in many industries, such as utilities and the railways.
