Post office privatization..... thoughts?

[Paul007]

^ surprise surprise...

['daiking']

And shares promptly jumped in value by 30% or more, so it looks fairly obvious that they were undervalued, almost as if the Government wanted to try and buy a few votes.

They screwed the country by undervaluing it, screwed private investors by selling most to institutions and are now screwing the royal mail staff over the number of shares you get.

Really make you proud to be British.

[Rog Dodge]

Scameron!!!!!!!!!!!!!! AGAIN!!!!!!!!!!!!

[expostmanpat]

 now screwing the royal mail staff over the number of shares you get.

 

 

 

Not sure how you make that out?? RM staff got their full allocation ie upto £10k and are getting 10% of the shares divied up. They have only said they will announce the value of the free shares on the basis of the closing price on Tuesday, the number of actual shares shouldn't alter wether they are valued 50p or £50

[Dr Zoidberg]

Somewhat cheekily they took payment for the £2k I applied for and I won't get the balance back for ten days.

['daiking']

Not sure how you make that out?? RM staff got their full allocation ie upto £10k and are getting 10% of the shares divied up. They have only said they will announce the value of the free shares on the basis of the closing price on Tuesday, the number of actual shares shouldn't alter wether they are valued 50p or £50

Its being reported as £2000 of shares (pro rata) at Tuesday closing price which you would expect to be higher than the offer price, ergo, less shares.

If full timers end up with their 600ish shares you'll have done OK.

[gadgetman]

They screwed the country by undervaluing it, screwed private investors by selling most to institutions and are now screwing the royal mail staff over the number of shares you get.

Really make you proud to be British.

And if they'd upped the price by 30% and it floating at less, today the politicians would be fighting over air time to denounce over pricing and small investors losing their shirts.

Interesting how 371 RM staff refused their shares. Bet their other halves are impressed with their moral stance....

So now they have shares which they can't touch for 3 years so it's in their interest to bring in the money and keep the markets happy.

Striking will sink prices, that better pay deal will raise prices and lose custom which will sink shares and worry the markets.

It's a clever idea by the government to wake up the unionist dinosaurs to the reality of the world today. THEY are the ones costing jobs, raising prices and ruining the service to the customer IMHO.

Hopefully those with an interest in a decent win fall in 3 years time will start looking differently to the unionists, the dinosaurs and the lazy within royal mail.

[lol-lol]

Cheers Cameron / Cable, just lost the country a billion pounds, brilliant.  

[domhnall]

It's a clever idea by the government to wake up the unionist dinosaurs to the reality of the world today. 

 

 

jings, Scottish and/or  Northern Irish politics sneaks into every thread eventually

[expostmanpat]

Its being reported as £2000 of shares (pro rata) at Tuesday closing price which you would expect to be higher than the offer price, ergo, less shares.

If full timers end up with their 600ish shares you'll have done OK.

 

They are committed to giving the workforce 10% of the total number of shares, the Daily Wail etc are jumping on the £2k figure because that is what RM estimated the shareholding would be worth at what they expected the flotation price to be.

[expostmanpat]

So now they have shares which they can't touch for 3 years so it's in their interest to bring in the money and keep the markets happy.

Striking will sink prices, that better pay deal will raise prices and lose custom which will sink shares and worry the markets.

It's a clever idea by the government to wake up the unionist dinosaurs to the reality of the world today. THEY are the ones costing jobs, raising prices and ruining the service to the customer IMHO.

Hopefully those with an interest in a decent win fall in 3 years time will start looking differently to the unionists, the dinosaurs and the lazy within royal mail.

Not really, but just the sort of statement we would expect from you

[gadgetman]

Not really, but just the sort of statement we would expect from you

Not just me.

 

I have 3 RM workers in my street (2 households) and a cousin in the west country.  All have made comments about the stalworts wrecking their shares value.

 

During the last strike none of them striked, and none are voting for strikes this time.  Might be notable all are under 35.

[expostmanpat]

Not just me.

 

I have 3 RM workers in my street (2 households) and a cousin in the west country.  All have made comments about the stalworts wrecking their shares value.

 

During the last strike none of them striked, and none are voting for strikes this time.  Might be notable all are under 35.

Wrecking their shares value lmao. they can't sell for 3 years and if they sell before 5 years they lose most of it in tax, do they honestly think a couple of 1 day strikes will effect the price of shares 5 years down the line?? Do they think they will still be employed by RM 3 years down the line to be able to draw their shares??

 

Already one investment firm is talking about if RM shed x% of the workforce then shares could rise to £xx/xx due to increased profitability, ask your friends where they stand on the seniority ladder, whatever else the union might do, it is at least trying to maintain the workforce.

[gadgetman]

Wrecking their shares value lmao. they can't sell for 3 years and if they sell before 5 years they lose most of it in tax, do they honestly think a couple of 1 day strikes will effect the price of shares 5 years down the line?? Do they think they will still be employed by RM 3 years down the line to be able to draw their shares??

 

Already one investment firm is talking about if RM shed x% of the workforce then shares could rise to £xx/xx due to increased profitability, ask your friends where they stand on the seniority ladder, whatever else the union might do, it is at least trying to maintain the workforce.

You cant maintain a workforce 'just because'.  Now it's RM PLC, shareholders will want savings.  If that means jobs, it'll mean jobs. If it means a machine sorting instead of 20 workers, then sorry 20 workers will be replaced.  Even my neighbours and cousin arent so blinded to see it's coming regardless.

 

Customers are leaving RM.  Why? because it costs so much to post a letter, and the service is deminished to keep within costs.  Again, why? Outdated practices which are too costly and a workforce that want more and more money.

 

If you or the unions think they can stop this then they're very much mistaken.

 

The CWU alone with RMT pretty much sums up why I dislike unions.  Only interested in self preservation and NOT the customers

[Llanigraham]

So, Gadgetman, how do you propose that they still offer a 6 day collection and delivery service to EVERY address in the UK with your profit based, pay the investors system?

 

And if you want to mistakenly mention the RMT, perhaps you could tell us numerous signallers, who are looking at redundancy in the next 5 years against which the RMT have done beggar-all, what we are supposed to do?

[gadgetman]

I would say it IS still achievable to maintain a 6 day delivery.  But costs have to be cut, and the sad fact is that means jobs go and more machines to speed things up.

 

There's already less mail and it's in decline.  Sure emails and social media has had an impact, but with increasing costs people are debating sending that letter/card/package and looking at cheaper alternatives.  This week I sent a small A5 packet the other day which cost well over £3 second class signed for. First was almost £5. It had to go as a packet because it went slowly through the 25mm gap instead of flying trough.

 

I had to send it, and didnt have a choice.  Certainly now I no longer send gifts to family, I send cash direct to their bank, evouchers or wait until I see them in person.

 

Demanding more pay or striking until everyone keeps their jobs does only one thing and thats drive up postal prices to pay for it or leaves the customer with an ever further reduced service (we're already on an unofficial post every other day service round here, and have the leave the parcel at the depot and simply post a card through).  So the decline continues, more jobs need to go...... 

 

 

As for the RMT supporting you, perhaps if you were Underground staff they'd be over you like a rash.  Bob loves LU

[Llanigraham]

What alternatives to using Royal Mail?

You may have in the large urban areas, but for us out in the countryside there are NO alternative suppliers.

So who do you suggest we use? RM is the only one, and in our area they provide a bloody good service.

[gadgetman]

Well now it's privatised perhaps there will be a competitor emerge.

 

And once the Post office is spun off, the idea will surely be you go to the post office and they'll sort to the correct carrier and act as a handling agent.

 

Pretty sure the Netherlands have competing postal carriers?

[lol-lol]

Well now it's privatised perhaps there will be a competitor emerge.

 

And once the Post office is spun off, the idea will surely be you go to the post office and they'll sort to the correct carrier and act as a handling agent.

 

Pretty sure the Netherlands have competing postal carriers?

 

Yes I think it is TNT for the Netherlands and DHL/ Deutche Post in Germany.  I work with both firms in logistics and they are both examples of firms who are not without issues in the service they provide and they are there to make a profit are charge accordingly.  Like all the companies involved they offer the service but need to make profits for the shareholders and hence, IMO, cannot better a well run Public service but unfortunately treated all our Public Servant they are like the dog that has been beat too much "to quote the Boss".  

[domhnall]

No, tnt bought the Dutch post office and DHL is owned by the German post office. Tnt is now lobbying to reduce the universal service obligation to allow them to cut back to only deliver 3 days a week.

Sent from my GT-I9300 using Tapatalk 4

[expostmanpat]

I refer to my first post where I hinted that Gadgetman is talking out of his harris as usual. Any other forum he would be called a Troll every time that RM is mentioned.

[gadgetman]

I refer to my first post where I hinted that Gadgetman is talking out of his harris as usual. Any other forum he would be called a Troll every time that RM is mentioned.

How long have you worked for RM? What is your most recent employment experience of the private sector?

Like it or not times are changing and RM workers have to let go of the good old days. It's no longer a job for life, and now like the rest of us you are just a number and statistic.

You seem to dislike the changes, have cited protecting the customers but haven't answered how better pay leading to increased prices for the customers you're passionate about is good for consumers?

2nd post and other cuts are what is funding your better pay. The old practices of job and knock died in many businesses decades ago. Even bin men have had to work their full quota of hours for many years as councils farmed their jobs to private companies.

My issue isn't with you. It's with unions and their members demanding to keep expensive outdated practices which punish the customer they claim to be fighting for. And sorry to say, but RM is the last of the major public companies being privatised with its workforce being dragged into the reality of modern business without a monopoly.

[gadgetman]

Wrecking their shares value lmao. they can't sell for 3 years and if they sell before 5 years they lose most of it in tax, do they honestly think a couple of 1 day strikes will effect the price of shares 5 years down the line?? Do they think they will still be employed by RM 3 years down the line to be able to draw their shares??

Already one investment firm is talking about if RM shed x% of the workforce then shares could rise to £xx/xx due to increased profitability, ask your friends where they stand on the seniority ladder, whatever else the union might do, it is at least trying to maintain the workforce.

Replace British Airways with any other floated company name. Any strikes are only hurting RM staff with shares themselves, and if any unrealistic pay demands are met, profits and revenue fall, or prices set to rise markets will react accordingly and lower the shares the workers now own.

https://www.google.co.uk/search?q=British+airways+share+price+strikes&oq=British+airways+share+price+strikes&aqs=chrome..69i57&client=chrome-mobile&sourceid=chrome-mobile&espv=1&ie=UTF-8

How is that bull or talking out of my Harris?

[expostmanpat]

The competition have been able to set up their own delivery operation for the last 8 years + they haven't. The competition send their mail and PARCELS through RM DSA, this shows us 1 of 2 things (if not both)

 

1) The competition don't have the infrastructure or the willingness or capital to set up the infrastructure to either deliver mail OR the Volume of packets they currently receive.

 

2) As I am sure these PRIVATE companies with shareholders to protect, don't charge a cheap price, to then send their custom via another carrier (RM) with a dearer price, I can only conclude that RM will be able t continue with its pricing structure for a long time to come.

 

As an aside I doubt as a private company RM and its shareholders will continue to tolerate DSA mail, ie delivering TNT/DHL/UK mail, collected post 'the final mile' whilst they cherry pick inner cities, and expect RM to meet the USO in rural areas. As these companies have had so long now to get their house in order to provide their own delivery service I can well see the regulator scrapping RM's obligation to accept DSA. This will of course push prices and profits up as customers are forced back to RM .

 

Unless you really think there are going to be 5 or 6 differently uniformed postmen trundling up your garden path everyday?

 

Other privatised company can't be compared to RM, it is labour intensive, unless the general public en masse decide that they are all happy to collect their mail from a central hub then it will continue to be so. Already RM as shed 50,000 jobs through natural wastage, these have come from mail centers ie manual sorting. The actual delivery arm is having to actively recruit mainly because modernisation as lead to a need for more postmen!!! All be it mainly part time.

 

I appreciate this sounds like 'head in the sand' but there is no real alternative to RM (nor imo is there likely to be). IF the CWU wanted to cause damage they would call an all out strike of extended duration, then you would see how much the country needed RM and what good value the service was. Instead they will call out rolling day strikes so mail is never more than a day behind, an inconvenience maybe, but one that actually MAKES RM millions of pounds for every day of strike action!!

[Llanigraham]

Gadgetman,

Since both TnT and DHL/DP have said that they would want the USO in rural areas to be reduced to 3 deliveries per week and collections from "Centres" only, how is that "improving" the service currently provided.

 

Just because you live in an urban area shouldn't and doesn't give you the right to a better service!