Keep The Post Public - Update

As part of the Union's continuing campaign to Keep the Post Public, the Union met with Ed Davey MP, Minister for the Post Office.  The meeting was part of the scheduled quarterly meetings with the Minister.

This contact enables the Union to keep up to date, on a formal basis, as to the Government's activity with respect to the whole of the Royal Mail Group.

Prior to the meeting, which took place on Tuesday, January 24th, the Minister welcomed the announcement of an Inter Business Agreement between the Post Office Counters and Royal Mail.  The Inter Business Agreement (IBA) would be for ten years.  He also announced the date for the formal separation of Post Office Counters from the Royal Mail Group.

The Union lobbied very hard to achieve a 10 year Inter Business Agreement.
At the meeting with Ed Davey, the CWU's delegation raised concern about the future security of pension provision. The Union also raised its concern about the proposed regulation of Royal Mail after Ofcom makes its decision following its consultation.
The Union is continuing to lobby the EU Commission on the provision of State Aid for restructuring Royal Mail, and the removal of the pension's deficit. 

The Minister agreed that good progress is being made, with the assumption that this clearance will be given by April. The Minister also suggested that any sale of Royal Mail was unlikely before 2013, as any investor would wish to see that the new system of regulation was working without damaging Royal Mail. 

The Union raised the possibility that the Government would move to an early sale, as they did on Northern Rock, or that a management buy-out would be encouraged.  The Minister suggested these were unlikely.

It was agreed to meet again next month to register progress on these matters and the issue of Royal Mail's modernisation.

Source: CWU

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