Union leader calls for stronger commitments from potential buyer of Royal Mail
The proposed acquisition of Royal Mail’s parent company by Czech billionaire Daniel Kretinsky’s EP Group has raised concerns among the union representing its 112,000 UK frontline workers. Communication Workers Union (CWU) general secretary Dave Ward expressed his dissatisfaction with the commitments offered by EP Group during talks with representatives of the company.
Last week, International Distribution Services (IDS) announced that it had accepted a revised £3.6bn offer from EP Group for the business, including its international parcels arm GLS. This offer represents a premium of over 70% to the share price of IDS before the initial takeover proposals were made public.
Under the full terms of the deal, the new owner would maintain the UK tax residency, headquarters, branding, and employment rights of Royal Mail. EP Group has also committed to upholding the current Royal Mail universal service obligation, which guarantees one-price-goes-anywhere first-class post six days a week. Additionally, the company stated that there are no plans for significant changes to headcount or frontline workers beyond existing strategies.
However, the CWU remains skeptical and argues that these commitments are not strong or long enough. The union has also called for a broader debate on the ownership of Royal Mail to be a central issue in the upcoming general election on July 4th.
Ward stated, “The meeting was useful and constructive, and further discussions will take place, including the direct involvement of Daniel Kretinsky. We made it very clear that the current commitments from EP Group are insufficient. Kretinsky has openly stated his desire to own Royal Mail for the rest of his life, and we need commitments for the workforce that reflect that level of ambition.”
The CWU also believes that a new ownership and business model for Royal Mail is necessary to ensure the company’s success. They argue that all employees should have a stake in the future of the business.
In response to the union’s concerns, EP Group has promised to explore these issues further. Kretinsky, who already holds a 27% stake in IDS, has stated that the company would be safe in his hands. He believes that EP Group’s experience in owning critical national infrastructure makes them well-suited to manage Royal Mail.
Ward also expressed his intentions to involve the government and the Labour Party in discussions about the takeover bid. He concluded, “The CWU position is clear – we do not support a foreign equity company taking over Royal Mail. However, we also have no confidence in the current Board of the company. Our job now is to ensure that our members’ voices are heard throughout this process.”
Kretinsky has acknowledged the responsibility that comes with owning a company like Royal Mail and has promised to maintain its history and tradition. He believes that IDS has the potential to become one of the largest postal logistics groups in Europe under EP Group’s ownership.
The union and EP Group will continue to engage in discussions, and the acquisition is subject to both shareholder approval and official scrutiny.