Royal Mail workers to get 10% carrot

Royal Mail workers will be offered a 10% stake in the company as the British government steps up plans for a flotation amid a recent rally in financial markets, it was reported yesterday.

Ministers are in advanced talks about giving the shareholding to staff at Royal Mail, who could be offered attractive incentives to buy shares or even be offered them for free, according to The Sunday Times.

The privatisation will be Britain’s biggest for more than 25 years, since the British Telecom and British Gas shares sales in the 1980s.

It is thought that investment bank UBS tested the market appetite for a stockmarket listing before Christmas and that the recent gains seen on the FTSE 100 Index which had its best January for 24 years has spurred on plans for a possible flotation.

But the terms of the staff share deal must reportedly be put in place before a listing can go ahead.

Royal Mail also needs to finalise a new pay deal with unions as a two-year pay agreement is set to expire at the end of next month.

A stockmarket flotation is only one option for Royal Mail’s privatisation, with the government also considering the potential for a sale to a rival or private equity fund.

The privatisation plan is being led by business minister Michael Fallon.

Royal Mail saw a leap in underlying earnings in the six months to the end of September, to £144 million (€167m) from £12 million (€13.9m) a year earlier.

A rise in parcel deliveries on the back of a surge in internet shopping is helping offset ongoing declines in its letters business.

© Irish Examiner Ltd. All rights reserved

Email Updates

Receive our lunchtime briefing straight to your inbox

More in this Section

Cork Company of the Year Awards 2017: 'Large' Category

Highest fuel prices for almost 18 months - and it could get worse

Challenge for Irish business negotiating new trading arrangements during Brexit negotiations

Cork Business Association celebrating its 60th in style


Breaking Stories

Donald Trump threatens business leaders considering relocation with border tax

Tekken 7 will arrive in the UK on June 2

Babee on Board helps pregnant women get a seat on public transport

United Airlines glitch delays 200 flights

Lifestyle

It's been a long and winding road for music group Fairport Convention

We’ll have to shout ‘stop’ to non-bio plastics, or else...

The Big Book of Happiness is here

Smartphones have ushered in a golden age of personal eccentricity

More From The Irish Examiner