Royal Mail sale: staff in Manchester insist privatisation is wrong move

Angry postal workers say free shares deal from planned flotation does not blind them to threat of cuts to wages, and contracts

When Vince Cable stood up in the Commons on Wednesday to confirm that the government was going to sell Royal Mail, the staff at the sorting office on Oldham Road, north Manchester, were too busy to listen.

They had mountains of letters to sort, most of which had been dropped off by rival companies, such as TNT, the winners of outsourcing deals involving picking up mail from Barclays, Matalan and other big firms (the sort of contracts many Royal Mail employees view as "low hanging fruit"– the easy stuff).

But short of saying that he'd had a change of heart, there was little the business secretary could have said to placate the angry post workers.

Lee Mather, 40, had been on shift since 6am and, like the majority of his colleagues, was firmly against privatisation. The promised offer of £2,000 of free shares had done nothing to change his mind. "You're selling your contract down the river, aren't you? We know whoever takes over will try to downsize our contracts."

Pete Clarke, a mail sorter and local chair for the Communication Workers' union (CWU), agreed. "Look at the companies who already offer rival services, your TNTs and the like. How do they undercut the Royal Mail? By paying their workers less – the minimum wage a lot of the time – and by cherry-picking the most profitable services.

"That two grand is not going to blind anyone, is it? Think of the other national services which have been privatised, British Gas, British Telecoms, they've got half the staff they did when they were under national ownership."

Malcolm Curry, 50, who has worked at the sorting office for 30 years, said: "The government are the winners, not the Royal Mail workers. The rich get richer and the poor get poorer … I don't think there are any benefits for us and none for the customers. I can't see that in 12 months' time we'll be delivering to every household every day. Privatisation is all about making profits. There will be cutbacks, and shareholders will have profits instead."

Many of the staff recalled receiving "phantom" shares, which track the performance of the business, years ago when Allan Leighton was chairman – a move the CWU always opposed on the grounds it amounted to "creeping privatisation".

The workers say they were told the shares would earn them thousands of pounds, until Moya Greene, the Royal Mail Group's chief executive, changed the goalposts, making them more or less worthless. "We've been here before," said Clarke.

Steve Davies, from the free-market thinktank, the Institute for Economic Affairs, said yesterday he did not see "anything inherently wrong" with the end to a universal UK postal service. It made sense for people living in rural communities to be required to pay a premium for a local postal service, he said. "It's part of the price you pay for living in beautiful rural surroundings."

Clarke was appalled. "A lot of people, especially elderly people, will be disgusted. If their services are cut, people in isolated places will become even more isolated."

Mather added: "Our opposition to privatisation isn't just about our jobs. It's about the people of this country."

Contributors

Helen Pidd and Sarah Dawood

The GuardianTramp

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