Royal Mail warns of jobs cuts

Royal Mail today warned its 150,000 staff that following the privatisation of the service “it will employ fewer people in the future, whoever owns it”.

The warning came at the Commons business select committee meeting on the Royal Mail’s privatisation.

At the meeting, business secretary Vince Cable defended the government’s valuation of the business and its cap of £3.30 per share.

Prices are expected to reach around £4.10 during conditional trading.

But the Communication Workers’ Union (CWU) warned investors that Royal Mail employees could precipitate a free fall in share value, should they decide to sell their shares for cash after three years.

Royal Mail staff are being given 10% of the privatised company for free, and the government said yesterday that all but 368 of the 150,000 staff had chosen to subscribe to the shares.

CWU spokesman Kevin Slocombe warned: “There will be a mass exodus of people selling the shares for cash as soon as they can.”

Royal Mail staff subscribing to the shares will face a three-year lock-in on their portfolio of shares, worth about £2000 each.

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