Royal Mail privatisation

[telstarbox]

http://www.bbc.co.uk/news/business-24058989
The government has given formal notice to the stock exchange that it plans to privatise the Royal Mail "in the coming weeks".

It has not decided exactly how much of the service it will sell, but has said it will be the majority.

Employees will be given 10% of the shares, with the rest being offered to institutional investors and members of the public.

The minimum amount members of the public can apply for 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.

This has sparked comparisons with the privatisation of the rail network.

 

[nomis1066]

Interesting that this should lead to comparisons to the shambolic split up of rail which can never be called a privatisation given the amounts of public money troughed by various organisations.

As with all sell offs, give aways - it is a short term approach that does nothing to solve long term under investment. We are ripped off for gas and electricity and the elecricity infrastructure has not been upgraded to cope with demand as the ever increasing number of power cuts shows. Water mains leak as much as they ever did and anyone saying rail privatisation is a success is on a planet of their own.

Only now in Railnews has it at last emerged how travel stats are massaged to give the impression more people travel than actually do - a Hastings to Manchester journey by one person should be treated as one journey for that is what it is - but ATOC and others count it as two passenger journies because of there being two TOCs. Misleading in the extreme.

No doubt Royal Mail will be put through thje same PR mangle that all the others have. Best wishes to their employees.

 

[ainsworth74]

Well at least, for now, they're not talking about splitting it up and selling off bits of it rather then selling it as whole. Still, I would much rather they didn't sell it at all...

 

[Xenophon PCDGS]

If I may be so bold as to bring an associated part of Royal Mail into this discussion, what now is the exact financial position of the Royal Mail pension scheme.

 

[Clip]

If I may be so bold as to bring an associated part of Royal Mail into this discussion, what now is the exact financial position of the Royal Mail pension scheme.

I think the Govt have got that burden as part of the sell off

 

[Whistler40145]

Royal Mail is currently state owned, but what will change once privatised?

Although The Post Office is separate from Royal Mail, they both work side by side, so will the privatised Royal Mail have to accept certain conditions e.g. has to use the name Royal Mail & accept the current range of services at Post Offices?

 

[Xenophon PCDGS]

One matter that has been recently discussed concerns the matter of the image of the British sovereign head being shown upon all British postage stamps.

Are there any other other countries that seem to have this type of matter as part of their postal system ?

 

[Clip]

Royal Mail is currently state owned, but what will change once privatised?

Less money being stolen from birthday cards??


Its hard to think what will change to be honest, they will still be the only company to be the ones that actually have a postman to deliver the mail or are they allowing other courier/freight firms in to do the final delivery too?


Ive no idea about the stamps Paul, been a while since I collected them

 

[Greenback]

Whether the postage stamps will remain the same is the elast of my worries in regards to this sell off.

As a former Royal Mail employee, I am more concerned about safegurading terms and conditions for new entrants, the continuation of the Universal Service obligations, and avoiding the scenario where the most lucrative and profitable services are maintained while other parts of the service are withdrawn or left to rot.

When I heard the reason that privatisation is necessary is to allow Royal Mail to access the financial markets and bring privtae capital into the business, it sounded remarkably like the justification for privatising the railways. I suppose one good thing is that it can't be as shambolic as that turned out can it?

Oh - in case of any doubt, I am not in favour of it!

 

[telstarbox]

What concerns me is that collecting/delivering mail in very rural areas can't be profitable but is a vital public service, even more so in those parts.

 

[TheKnightWho]

What concerns me is that collecting/delivering mail in very rural areas can't be profitable but is a vital public service, even more so in those parts.

Just as delivering many rail services aren't either. I can't say I'm necessarily in favour of this, but I don't doubt that on the face of it not much will change in terms of the service actually given.

 

[Eagle]

What concerns me is that collecting/delivering mail in very rural areas can't be profitable but is a vital public service, even more so in those parts.

Which is why in the past couple of years there have been laws passed that guarantee that everywhere must have the same level of mail service at least six days a week.

The passing of those laws is what should have tipped people off that this was in the pipeline.


What concerns me is that very little of the mail delivery service in the UK is profitable at all. The current price of first class postage is ridiculously underpriced (despite what people moan every time it rises). Either we're going to see postage becoming a lot more expensive, or a huge Government subsidy. Or both.

 

[maniacmartin]

We already have a two-tier system though. Post always seems to take a day longer where my parents live in Lincolnshire compared to in London. First class in some areas is rarely next day, and 2nd at least 3.

Personally I think RM have to really look at their prices hard. For sending parcels, as a small business user (2-3/day), couriers are almost always cheaper for anything over 2 kg. How can RM not compete here? They have a very intense national distribution network, but strangely decided to separate ParcelForce and then run Standard Parcels into the ground as an overpriced and slow operation.

RM haven't adapted at the same pace as their competitors. You'd think they would have longer opening hours at sorting offices to get missed parcels etc, and manage to do things like postal redirection services without forgetting to redirect half the mail. Until recently, their website didn't work on non-Windows computers even. They seem stuck in the past, and I hope that new ownership will be able to breath fresh ideas and a new lease of life into them.

Although The Post Office is separate from Royal Mail, they both work side by side, so will the privatised Royal Mail have to accept certain conditions e.g. has to use the name Royal Mail & accept the current range of services at Post Offices?

It's a separate limited company, but is a wholy owned subsidiary of Royal Mail Holdings Plc., so really they're sister companies.

 

[Eagle]

First class in some areas is rarely next day, and 2nd at least 3.

That is the minimum service level. Be prepared to see that in a lot more places. (Much more egalitarian that way, no? )

It's a separate limited company, but is a wholy owned subsidiary of Royal Mail Holdings Plc., so really they're sister companies.

As is Parcelforce.

 

[maniacmartin]

Which company is being sold off? The group, comprising of RM, ParcelForce and Post Office or just the main deliveries company?

 

[BlythPower]

Either we're going to see postage becoming a lot more expensive, or a huge Government subsidy. Or both.

Both, I'd say - plus a poorer service. Obvously there's no way the government would want to keep subsidising a nationalised industry for the good of the nation. It's much better to subsidide a privatised one for some reason (director's bonuses, mainly). Still, as with gas, electricity, water and train fares, the high prices Britain will pay for its postal service will help keep costs down in Germany. Deutsche Post will no doubt snap up Royal Mail.

 

[Zoidberg]

Which company is being sold off? The group, comprising of RM, ParcelForce and Post Office or just the main deliveries company?

Certainly not the Post Office. From http://www.bbc.co.uk/news/business-24058989

...

The Post Office was separated from Royal Mail in 2012 and is not for sale.

...

 

[WessexEclectic]

Of course, the 'privatisation' has nothing to do with this [euractiv.com]. Nothing to see here, please move along now.

 

[BlythPower]

Of course, the 'privatisation' has nothing to do with this [euractiv.com]. Nothing to see here, please move along now.

From that link:

Efforts towards reforming the postal market began in the early 1990s, as part of the push to create a European single market. The aim was to:

get national monopolies to open up to competition in order to make postal services cheaper, faster, more efficient and more innovative – similarly to what was done in the telecom and energy sectors;

Well, that worked well with energy didn't it...

 

[SS4]

Royal Mail is currently state owned, but what will change once privatised?

Although The Post Office is separate from Royal Mail, they both work side by side, so will the privatised Royal Mail have to accept certain conditions e.g. has to use the name Royal Mail & accept the current range of services at Post Offices?

Same things that always change when something is privatised: higher costs and less service (especially if you're poor or rural)

 

[Eagle]

So I take it that it obviously wasn't possible to allow other private postal services to be established whilst keeping RM public... :roll:

 

[IanXC]

So I take it that it obviously wasn't possible to allow other private postal services to be established whilst keeping RM public... :roll:

Execpt for the keeping RM public bit... the likes of UKMail are used typically by large companies, who sort the mail and deliver it to the delivery/sorting(?) office and the RM then do the final door to door on payment of a fee. In many ways its similar to utility networks, except the network provider is also a supplier to those sending post.

 

[yorksrob]

Of course, the 'privatisation' has nothing to do with this [euractiv.com]. Nothing to see here, please move along now.

I wonder how long it will be until the RM is carpetbagged by our competitors.

 

[Butts]

My son has just started a job with The Royal Mail today - unfortunately he has dipped out on the shares as employment from July was the qualifying date.

However my biggest shock was to find out he will be paid weekly

This is good for him as a new starter not having to wait a month for any money but....

2013 and they are running 4 /5 payrolls per month with hundreds of thousands of employees - god knows how much that costs compared to one run per month.

If this is an example of the sort of antiquated working practices the organisation undertakes I'm not surprised it is being privatised.

Perhaps it's just new starters that are paid weekly, but somehow I doubt it.

 

[Xenophon PCDGS]

Perhaps it's just new starters that are paid weekly, but somehow I doubt it.

Can someone "in the know" clarify that matter.

 

[WillPS]

Everyone is paid weekly, certainly my Dad has since he started in 1998.

 

[Clip]

From that link:



Well, that worked well with energy didn't it...

Well according to some reports we actually have the 3rd cheapest energy in Europe. So Im unsure how you can think that hasnt worked compared to our European friends?

ETA : And I also read that the energy companies only make 5p in the pound as profit - seeing how we defend railway profits on here because they are only 3p in the pound why is it different for the energy companies?

 

[TheKnightWho]

Well according to some reports we actually have the 3rd cheapest energy in Europe. So Im unsure how you can think that hasnt worked compared to our European friends?

ETA : And I also read that the energy companies only make 5p in the pound as profit - seeing how we defend railway profits on here because they are only 3p in the pound why is it different for the energy companies?

Don't let facts get in the way of a good bit of government-bashing

 

[Mojo]

Its hard to think what will change to be honest, they will still be the only company to be the ones that actually have a postman to deliver the mail or are they allowing other courier/freight firms in to do the final delivery too?

As you have brought it up, I was surprised to receive a letter posted by someone in TNT Post uniform at around 14.30 this afternoon, after the Royal Mail delivery staff had already delivered several hours earlier. I was under the impression that following the opening up of the postal market to private companies, this only covered certain aspects, and that all delivery to residential addresses was still to be handled by Royal Mail. Certainly when I was at a different address, letters with ordinary stamps, Royal Mail franking and TNT stickers were both delivered by the same, Royal Mail, employee. Has this changed now or is it only the case in larger cities that both TNT and Royal Mail employ staff for residential deliveries?

Edit: http://postandparcel.info/56437/new...pands-end-to-end-delivery-trial-to-sw-london/. Ah seems it is new then, this article dated June 2013 states "TNT’s postmen and women, sporting orange-and-black uniforms, are now delivering mail in the boroughs of Hammersmith & Fulham, Wandsworth, Merton and Lambeth."

 

[maniacmartin]

I thought that Royal Mail had to do the final part of the delivery if the other postal company wishes, but that the other company (e.g. TNT) can do the full end-to-end delivery if they wish. All the remote post that's costly to deliver will of course still be delivered by RM.