UK government considers privatisation of Royal Mail
The UK government is seriously considering a return to the 1980s and a privatisation of Royal Mail along the lines of the British Gas share offer. This will come as a bitter blow to the unions who are seriously concerned about potentially enormous job cuts in the short to medium term although it is rumoured that Royal Mail staff could be offered up to 20% of the business if it was floated.
While a potential sell-off of the Royal Mail would be controversial there's no getting away from the fact that the company has a pension deficit which currently exceeds £10 billion and there is greater need for cost-cutting than ever before. The previous Labour government had begun the odious task of cutting the cost base at Royal Mail although union intervention and the election earlier this year seemed to slow down progress. However, the coalition parties have now picked up the baton and are apparently willing to push through major changes in the short to medium term.
Like so many previously privatised companies there is no doubt that there will be significant interest for Royal Mail which has a number of profitable operations. How the government and the UK public would feel if the company fell into "foreign hands" is another matter for debate.
Share this..
Related stories
Sir Fred Goodwin blamed for Royal Bank of Scotland woes
While just two years ago Sir Fred Goodwin was renowned as the sharpest mind in the UK banking sector he today stands accused of losing Royal Bank of Scotland £28 billion over the last two years. Despite being a regular visitor to Gordon Brown at 11 Downing Street it would appear that the whole banking community and political scene have turned against Sir Fred.
Over the last few yea...
Goldman Sachs plays down bonus payments
US financial giant Goldman Sachs has today played down bonus payments for employees with many people suggesting they have been under stated specifically to keep the US government happy. The shift in strategy regarding bonuses has benefited the bottom line although the company is still on track to put aside around $20 billion for bonuses this year. So what next for the US financial sector?
<...
HBOS Announces 400 Job Losses
In a move to shore up what in the eyes of many has been an ailing business for a few months now, HBOS has confirmed that an additional 400 employees around the group will lose their jobs. This is on top of the 650 job losses announced earlier this summer as the group looks to reorganise and downscale for the future.
While many reasons for the job losses are specific to HBOS there i...
Long-term investment strategies still deliver
Despite the fact that the UK stock market has fallen, the property market is under pressure and more and more people are struggling to meet their monthly needs, there is still no doubt that a long-term investment strategy can deliver if administered correctly. Many people believe that a long-term strategy is effectively buying an investment and leaving it forever and a day without a review. This i...
Read MoreIs there significant oil off the Falklands?
Despite earlier reservations about the amount of oil which potentially may lay off the Falkland Islands, in UK territorial waters, shares in an array of Falkland Island-based oil companies have pushed strongly ahead over the last few days. Rockhopper, which appears to be one of the main oil explorers in the region, announced "medium gravity" crude oil from one of its inspection rigs and indicated...
Read More