Tentative Andy
I'm in the Meal Deal
What are people's thoughts on this whole situation?
During the meeting, there was angry criticism of government policy, some calls for the union to sever its links with the Labour Party and claims workers were being "blackmailed" by linking the pension deficit issue to the part privatisation.
Chief executive Adam Crozier told the Commons business and enterprise committee on Tuesday they were facing "rapidly declining" volumes of letters posted - with an 8% drop predicted next year.
When the pension deficit was revalued, it was expected to reach between £8bn and £9bn, he said.
He added: "The simple fact is the business doesn't generate enough cash to fund the investment required to modernise the business and ensure the future of the USO (universal service obligation).
Unions argue the Royal Mail made a healthy profit in 2008 and can thrive in its current form.
Your last point seems the important one to me - the fact that, notwithstanding an undoubted general reduction in the use of mail services, the postal service is currently turning a profit. It therefore seems strange and unfair that the governement will refuse to offer direct help to what is after all one of its own services, whilst simultaneously spending comparable ammounts to prop up independent banks that are on the very brink of collapse.
I admit that issue is a difficult one for me though. As a point of principle, I believe it is very important that the royal mail remains in public ownership. However, the immediate practical concern must be that their employees can remain certain about their pensions and general job security, no matter what that may require.
Keeping the debate moving - what chance do you think there is that the proposal could be defeated in the Commons vote? At the moment it certainly seems possible, based on the reported polls, but I worry that as the vote approaches, potential Labour rebels will get nervous and resistance will dwindle. Especially once the whips get involved of course.
can i say i thoroughly enjoyed Matt's post: he has the figures to justify what he's saying, and i had a grim chuckle at some of the details of Crozier's CV.
Re: the commons vote- the Labour rebels are not important as the Tories will vote with the gvt
There was some suggestion that the tories may vote agains the bill, notionally deeming it insufficient, in reality to see the govt defeated.
from the guardian article:
Officially, George Osborne, the shadow chancellor, welcomed the bill yesterday. He told BBC1's Politics Show: "Of course we will scrutinise the decisions they take [on Royal Mail's part-privatisation] but the overall direction is correct and they must not bow to their rebels and their union paymasters. Peter Mandelson is doing the right thing. He should ignore the voices off in cabinet; he will have the Conservatives' support to do the right thing."
which would make a vote against politically difficult
blimey, its a bit of of a love-in round dissensus at the moment isn't it?![]()