Royal mail’s profits has more than doubled over the last year from £168 to £321 million, despite the posting of letters decreasing. People in opposition to the bill being approved in the house of commons have been throughly disgusted at the annoucement. If this bill is passed than forty nine percent of royal mail will be privatley owned. 180 MPs have signed a petition to try and stop the motion from going through to keep Royal mail as a public company.
Unions have rightly been very angry at this announcement after royal mail has attempted to freeze their pay. Royal mail were using the recent troubles with the recession and the drastic fall in the numbers of letters posted to freeze the pay of their work staff. Sources in opposistion to the pay freeze have said that ‘a pay freeze is just not defendable in this situation’. Posting letters fell 6 percent in the UK in the past year and might reach ten percent in this year.
Also annoucned was the amount of money chief executive Adam Crozier has been making -£995,000, as opposed to the £3 million he made in the year before that. Though his wages were froze at £633,000, the rest of his payment came from a deferred bonus scheme he has in his contract. This makes Crozier Britain’s highest paid civil servant -which he has received much critism for.
Revenue was increased for Royal Mail due to the prices rises, which saw revenue come in at 10 billion pounds. Parcelforce’s profits increased by £4 million up to £12 million, and general logistics got a profit rise of £10 million. And their various other businesses recorded profits of £86 million. If the privitisation in the ownership takes place, we would see the tax payer funding the companies pensions scheme.
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