Royal Mail union explores plan for workers' trust post privatisation

Union leaders are considering plans to set up a workers’ trust in Royal Mail, using the 10pc share stake being allocated to employees, as a way to increase their influence after privatisation.

The Union of Communication Workers has been reviewing its privatisation strategy and, while still opposed to the flotation, has been attracted by the approach adopted by employees in Eircom, the Irish telecom monopoly sold off in 1999.

Employee shares were used to create a trust and dividends set aside to buy more shares with the result that the employee shareholding is now around a quarter of the Eircom equity. Some CWU leaders feel a similar approach at Royal Mail would in time provide a powerful negotiating block but there is strong support for short-term action that could embarrass the Government and delay privatisation planned for October.

Read more: Royal Mail union explores plan for workers’ trust post privatisation – Telegraph.