Sunday, 1 March 2009

Mutiny in the Commons - Royal Mail Privatisation

munting in the commonsPeter Mandelson has announced plans to part-privatise the Royal Mail in order to modernise it and safe guard workers pensions. His proposal has been met with protests from MP's, and unions who are prepared to vote on withdrawing donations from the Labour party.

The rebelling Labour MP's have stated that the partly made a manifesto pledge to keep the Post Office in public hands. Yet browsing over their manifesto you can't help but see they've made many pledges they haven't kept. So what are we really seeing within this rebellion, the finial days of Thatcher, John Major or Jim Callaghan?

There certainly seems to be a sense of Euroscepticism around this issue, yet the problems within Royal Mail would still exist without the EU's plans. Opening the market to allow competition, just exacerbated the faults already there. As successful businesses adapt to meet changing needs, Royal Mail hasn't.

Essentially Labour are reacting to the situation rather than being pre-emptive to begin with. As there is no point entering a competition and just hoping you're fit enough to compete. The EU postal plans were announced 15 years ago, and were implemented in 2006, 3 years earlier than needed. Labour and Royal Mail management have had up to 12 years in order to strengthen their position and find a workable solution for pensions.

Yet here we are, with the proposal of piggy backing a successful company to minimal investment from government, nice due care Mandelson.

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