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

Irish exports to grow, if Trump doesn’t spark trade war

What can Irish firms exhibiting at Europe’s largest trade fair expect?

Hotel insurance ‘costs €730 a room’

Brexit jobs dividend may not be good for Ireland


Breaking Stories

Alcatel’s new smartphone is very bright, but not how you think

Hands-on: Is Nokia’s reborn 3310 actually any good?

China arrests hundreds in crackdown on underground banking

San Diego is set to get smart streetlights which will help control traffic

Lifestyle

How designing spoke guards for her sister's wheelchair became a business for Ailbhe Keane

Twenty years of divorce in Ireland - How have we fared?

Some elaborate witty and reflective wallpapers which are trending this year

The great ground force at the Garden and Landscape Designers Association event

More From The Irish Examiner