News and press releases
- Royal Mail notes the outcome of the Unite consultative ballot
- Around 5,660 of Royal Mail’s 8,300 managers are members of Unite the union. Given the 50 per cent turnout, around one third of Royal Mail’s managers voted in the Unite consultative ballot. Therefore, only around 27 per cent of Royal Mail managers said they did not accept the Company’s proposals for the Royal Mail Pension Plan as they stand and around 24 per cent of managers opposed the Government’s plans for privatisation of the business
- Royal Mail stressed this is a consultative ballot by Unite to understand its members’ views on two issues, not a ballot for industrial action
- We continue to have talks with Unite on a range of issues and we are committed to making progress as soon as possible
Royal Mail’s position on the two issues that formed the basis of the consultative ballot is as follows:
- The current legal position is that all the terms and conditions that apply to Royal Mail Group employees, including those working for Parcelforce Worldwide, would remain in place, on the same basis
- Our employees will have a meaningful stake in the company and its future success. Just this week, the Government announced that 150,000 employees would be automatically enrolled in the free shares scheme
- This is the largest free stake of any major UK privatisation
- The cost to companies of maintaining defined benefits pension schemes has risen in recent years. This is due in part to the recession and the Government’s policy of printing money to help the economy. Royal Mail is impacted by this as much as any other company
- The NAPF estimated that the second £125 billion round of quantitative easing led to pension funds moving a further £90 billion into deficit
- Royal Mail proposes to use some of the £2billion of assets left in the Royal Mail Pension Plan after the Government transfer to keep it open for existing members, subject to certain conditions. The proposal would see no changes to members’ contribution rates, retirement age or accrual rates
For more information contact:
Mish Tullar on 07423 524154
Sally Hopkins on 07801 094345
Notes to editors
Royal Mail has around 8,300 Royal Mail managers in grades represented by Unite the union. Royal Mail understands that approximately 5,300 of its managers are members of Unite the union.
About Royal Mail
Royal Mail is the Designated Universal Service Provider in the UK. It delivers an affordable six-day-a-week, one-price-goes-anywhere, postal service to more than 29 million UK addresses. Royal Mail is regulated by Ofcom. Royal Mail Holdings plc is directly owned by HM Government and is the ultimate parent company of Royal Mail Group Limited. The Group operates within the United Kingdom, including a number of subsidiaries, associates and a joint venture. These include Royal Mail, which delivers more than 99 per cent of letters in the UK and has a leading position in the UK parcels sector, and Parcelforce Worldwide, its express parcels business.
The Group also has a presence in most European countries, mainly through General Logistics Systems, one of the largest ground-based parcel delivery networks in Europe.
On 1 April 2012, Post Office Limited was transferred from under the ownership of Royal Mail Group Limited to become a direct subsidiary of Royal Mail Holdings plc.
The information contained in this document does not constitute an offer for sale of securities in the United States, Canada, Australia or Japan or any other jurisdiction and is not for distribution in the United States, Canada, Australia, or Japan or any other jurisdiction where such distribution would be unlawful.
The securities referred to in this document have not been registered, and will not be registered, under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold in the United States unless they are registered under the U.S. Securities Act or pursuant to an exemption from, or in a transaction not subject to the registration requirements of the U.S. Securities Act. There will be no public offering of securities in the United States.
This document is an advertisement and not a prospectus. Any purchase of securities in any proposed offering should be made solely on the basis of the information contained in the prospectus to be issued by Royal Mail in connection with any such offering which will be published in electronic form and made available to persons resident in the United Kingdom on Royal Mail’s website.
Please note that the value of shares can go down as well as up. There is no guarantee that Royal Mail will float and no one should base any financial decisions on the Government’s flotation plans for Royal Mail at this stage.
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© Royal Mail Group Limited 2014