Royal Mail Group

Only available on StudyMode
  • Download(s) : 215
  • Published : December 5, 2010
Open Document
Text Preview
The crisis created for the Labor Government by the proposed sale and part privatization of the post office- Royal Mail

Recently, Royal Mail Group will be sold at least 1/3 of the whole business to private companies or foreign postal companies in the United Kingdom. One of 71 post centres, half of them will be cut down, and 50,000 employees will possible lose their jobs. One hand, this essay will demonstrate the crisis issue from public; on the other hand, how the issues have been handled by the Government and analyze these strategies and tactics.

Main body:
Royal Mail Group is one of the large-scale national enterprises in the United Kingdom, employees as many as 150,000 people. It is reported by British media, with the global financial crisis deepening Royal Mail Group of dismal business is facing a bad situation, which will be split sale possiblely, and the United Kingdom Ministry of Commerce and Postal Department are discussing a plan on postal privatization.

Beginning in 1635, Royal Mail's operation has been the oldest postal system in the world. Currently, Royal Mail maintains the monopoly on postal services of the civilian use, but it is squeezed and rarely shares in the field of business by foreign mail delivery companies. In the civilian use areas, the number of mail delivery decline year after year. Both of Royal Mail’s huge pension deficit and the increasing e-mails mean the service will never be profitable in this current form.

Dutch firm TNT, one of the mojor rivals with Royal Mail in the British postal market, TNT is thought to be the front runner to achieve the stake, which might be between 25% and 30%.

Part-privatisation of Royal Mail is opposed by unions and many Labour MPs, who think that it will undermine the universal delivery service and threaten thousands of jobs, and urge the government to rethink this plan.

The Conservatives and the Liberal Democrats support part-privatisation as a way of helping to...
tracking img