Staff may be offered shares as part of the government’s plan The government is to press ahead with privatising the Royal Mail.
Business Secretary Vince Cable made the commitment after receiving updated recommendations from the businessman Richard Hooper.
His latest report says the universal postal service can only be maintained by an injection of private sector money and expertise.
He also repeated his call for the Royal Mail’s pension scheme, which has an £8bn deficit, to be nationalised.
“Royal Mail is facing a combination of potentially lethal challenges – falling mail volumes, low investment, not enough efficiency and a dire pension position,” said Mr Cable.
“We will come forward with new legislation in the autumn.
“It will draw heavily on Hooper’s analysis and recommendations and the government’s wider objectives, including the need for employees to have a real stake in the future of the business.”
The plan was immediately denounced by the main trade union at the Royal Mail, the CWU.
Its general secretary, Billy Hayes, said privatisation would lead to higher prices for customers and job losses for staff.
“It’s the failed politics of history which brought disruption to Britain’s utilities and railways and astronomical prices for consumers,” he said.
“Dangerously in this case, we fear the government may also be plotting to seize the pension assets.”
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