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A more competitive Royal Mail will be able to reward quality employees with stronger compensation

British Royal Mail strike threat over privatization plans


By David C. Jennings ——--September 3, 2013

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The term strike, as in workers refusing to work, should probably no longer be classified as news but should instead appear in the lifestyle section of a newspaper since this appears to be a normal way of doing business for unions. Once again postal workers in the UK are threatening to engage in such a lifestyle in response to plans by the British government to sell off the Post Office to private interests.
It really seems like a good deal for postal workers as they stand to gain possession of free shares worth an estimated £2,000 each. Coupled with the projected increase in efficiency that is predictable when any government entity suddenly has to make a profit and the workers are well on their way to a solid retirement investment. Alas the powers that be in the Communication Workers Union remain disenchanted with the concept. Dave Ward, CWU deputy general secretary, said: "We are dealing with a company that is preparing for privatisation with relish. While the union continues to fight privatisation we are also dealing with the potential realities for workers if there is a change of ownership. We are looking to reach a groundbreaking agreement on terms and conditions that sets unprecedented legally binding protection for workers in the event of a sale, and regardless of who owns the company." Imagine that, a company leadership that looks forward to privatisation with relish! Nothing scares public sector unions more than having to deal with a board that is less interested in the growing welfare of its members and is more consumed with the satanic concept of profit.

In a desperate bid by Mr. Ward and his staff they are trying to lock in an arrangement to guarantee themselves some sort of relevance in the future. The CWU needs its members far more than the members need the union so the arrangement that is sort is one that keeps the workforce dependent on the union’s continued existence. According to a spokesman for the UK government’s Department of Business: "Industrial action is not necessary. It is disappointing that the CWU leadership has decided to ballot for strike action. They are standing between their members and a generous pay offer of 8.6% over three years, which is more than teachers, nurses and our armed forces, who have had pay increases capped at 1%. Royal Mail management are continuing to talk to CWU and we encourage both sides to resolve this dispute. Action taken by the CWU will not alter the Government's decision to sell shares in Royal Mail in this financial year. Parliament decided over two years ago that selling shares in Royal Mail was the right thing to do to secure Royal Mail's future and protect the six-day-a-week universal postal service. A successful, financially sustainable Royal Mail with access to private capital is in the best interests of the workforce and all users of the universal service." These comments were underscored by a spokesman for the Royal Mail, and echoed by Graeme Leach, Chief Economist for Royal Mail’s Institute of Directors who also said "The government is absolutely right to pursue the privatisation of Royal Mail, which will allow it to modernise, compete and survive." But union activists live in another world with the competing perspective that industry exists first for the benefit of the people it employs. Theirs is a narcissistic existence where employees are victims and the union is Moses come to set the people free, demanding that Pharaoh release them for as much time as they deem necessary (though it’s unlikely the time will be spent communing with Jehovah). The sell-off is not an absolute privatization. Employees free shares will make up 10% of the ownership and the company will operate under a charter with some price caps and all pricing guaranteed to be the same regardless of location. Earlier in the summer the Prime Minister, he who has demonstrated the ability to completely misjudge public opinion, said he expected “widespread support around the country to modernise this great public service”. But the Bow Group think-tank commissioned a poll that showed two-thirds of the public oppose the privatisation of the Royal Mail. Labour’s business spokesman Chuka Umunna jumped on that saying: “There is every sign that this treasured national institution is being sold off on the cheap to quickly get income to a Treasury whose economic strategy has failed.” But that’s what you expect from the Labour Party who are usually indistinguishable from the unions, their political marital partner. Public reluctance is likely because a) Brits like to hold on to familiar institutions and b) only the unions have presented a case on this. With the business side of things ramping up and showing the upside of the arrangement, that will likely change. As was the case with sell-offs in the early eighties once people started acquiring their own shares the concept surged in popularity. In the end it’s a win-win. A more competitive Royal Mail will be able to reward quality employees with stronger compensation while raising the standard of service as the organization moves towards competing on a level playing field. Only the unions will lose, and that is simply because there is no further use for them – which in turn is a victory for democracy.

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David C. Jennings——

David Jennings is an ex-pat Brit. living in California.

A Christian Minister he advocates for Traditional & Conservative causes.

David is also an avid fan of Liverpool Football Club and writes for the supporters club in America

David Jennings can be found on Twitter
His blog can be read here


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