The coalition aims to push through Royal Mail privatisation before strike action

In defiance of 96% of Royal Mail workers, ministers hope to complete the sell-off in advance of a nationwide strike.

The coalition has gone where even Margaret Thatcher dared not tread (she memorably remarked that she was "not prepared to have the Queen's head privatised") and fired the starting gun on the sell-off of Royal Mail. It is doing so in the face of overwhelming hostility from the public (with 67% opposed and just 20% in favour) and postal workers (96% of whom oppose the privatisation), as well as opposition from Labour, the Countryside Alliance, the Bow Group, the National Federation of Subpostmasters and the business select committee. 

The Communication Workers Union has said that it intends to ballot its members on strike action on 20 September, which could lead to a nationwide strike by 10 October. But the fear among trade unionists is that the coalition will attempt to push through the sell-off in advance of this date in order to avoid the spectacle of the government defying workers' wishes. A £3bn initial public offering is expected within weeks. 

The government has promised the 150,000 postal workers a 10% stake in the company, with shares worth up to £2,000 each, and an 8.6% pay rise over three years. But CWU general secretary Bill Hayes has rightly warned that staff will not "sell their souls" for such a stake. "Postal workers know that privatisation would mean the break-up of the company, more job losses, worse terms and conditions, and attacks on their pensions. It would be a wrecking ball to the industry they work in."

Ministers hope that the sell-off will pave the way for a revival of the popular capitalism of the 1980s and plan to launch a Tell Sid-style advertising campaign to persuade the public to buy shares. Michael Fallon spoke on the Today programme this morning of how he hopes that "millions of people" will become owners of Royal Mail. But at a minimum stake of £750 (£500 for staff) that seems rather rather Panglossian.

As Chuka Umunna has previously outlined on The Staggers, Labour opposes the sell-off on the grounds that it is an ill-timed firesale designed to help plug the £116.5bn deficit. He wrote: 

We opposed full privatisation when the government proposed it early in this parliament because we believe that maintaining the Royal Mail in public ownership gives the taxpayer an ongoing interest in the maintenance of universal postal services. It also gives us an interest in the all-important agreement the Royal Mail has with the Post Office, under which the Post Office provides Royal Mail products and services – crucial to the Post Office in the long term. Public ownership helps ensure the taxpayer shares in the upside of any modernisation and future profit that the Royal Mail delivers too.

Despite all this, the government is pressing ahead with its plans to sell off this 372-year-old institution. In so doing, it has failed to demonstrate why this is the best time to sell and why a sale this year will deliver best value for the taxpayer. Instead they are rushing headlong into privatisation without addressing fundamental outstanding issues for consumers and, in particular, the many small businesses that rely on Royal Mail services.

But the question unions will ask of Labour is "would you reverse it?" The CWU has announced that it will table a denationalisation motion at the party's conference later ths month. It states: "Conference believes privatisation will jeopardise the contribution Royal Mail makes to the national economy through the universal service obligation. Conference agrees an incoming Labour government should re-nationalise Royal Mail in the event of the coalition government actually selling the company."

Should Ed Miliband, as on other occasions, merely state that "were Labour in government now" it would not be pursuing privatisation, without outlining what the party would do in 2015, it will be harder for his party to profit from the opposition to the move. 

A Royal Mail post box in Westminster, London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

David Cameron addresses pupils at an assembly during a visit to Corby Technical School on September 2, 2015. Photograph: Getty Images.
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Can Cameron maintain his refugee stance as he comes under attack from all sides?

Tory MPs, the Sun, Labour and a growing section of the public are calling on the PM to end his refusal to take "more and more". 

The disparity between the traumatic images of drowned Syrian children and David Cameron's compassionless response ("I don't think there is an answer that can be achieved simply by taking more and more refugees") has triggered a political backlash. A petition calling for greater action (the UK has to date accepted just 216 refugees) has passed the 100,000 threshold required for the government to consider a debate after tens of thousands signed this morning. Scottish Conservative leader Ruth Davidson has tweeted: "This is not an immigration issue, it's a humanitarian one, and the human response must be to help. If we don't, what does that make us?" Tory MPs such as Nicola Blackwood, David Burrowes, Jeremy Lefroy and Johnny Mercer have similarly appealed to Cameron to reverse his stance.

Today's Sun declares that the UK has "a proud record of taking in desperate people and we should not flinch from it now if it is beyond doubt that they have fled for their lives." Meanwhile, the Washington Post has published a derisive piece headlined "Britain takes in so few refugees from Syria they would fit on a subway train". Labour has called on Cameron to convene a meeting of Cobra to discuss the crisis and to request an emergency EU summit. Yvette Cooper, who led the way with a speech on Monday outlining how the UK could accept 10,000 refugees, is organising a meeting of councils, charities and faith groups to discuss Britain's response. Public opinion, which can turn remarkably quickly in response to harrowing images, is likely to have grown more sympathetic to the Syrians' plight. Indeed, a survey in March found that those who supported accepting refugees fleeing persecution outnumbered opponents by 47-24 per cent. 

The political question is whether this cumulative pressure will force Cameron to change his stance. He may not agree to match Cooper's demand of 10,000 (though Germany is poised to accept 800,000) but an increasing number at Westminster believe that he cannot remain impassive. Surely Cameron, who will not stand for election again, will not want this stain on his premiership? The UK's obstinacy is further antagonising Angela Merkel on whom his hopes of a successful EU renegotiation rest. If nothing else, Cameron should remember one of the laws of politics: the earlier a climbdown, the less painful it is. 

George Eaton is political editor of the New Statesman.