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.

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland