Proposed takeover of Royal Mail by Czech billionaire is a result of mismanagement, says CWU

Proposed takeover of Royal Mail by Czech billionaire is a result of mismanagement, says CWU
Gabrielle Wilde

By Gabrielle Wilde

Published: 16/05/2024

- 13:27

The owner of Royal Mail is poised to accept an improved takeover bid worth about £3.5bn from shareholder and Czech billionaire Daniel Kretinsky

The proposed £3.5 billion takeover of Royal Mail by the Czech billionaire Daniel Kretinsky is the result of mismanagement by the directors of the group, according to the Communication Workers Union.

CMU General Secretary Dave Ward told GB News: “Royal Mail is a UK institution, it is a critical part of the UK’s infrastructure. So, of course, we're worried about it and we need to understand more about what it will mean.

“But can I also say that we are also not supporting the current Royal Mail group board and one of the reasons this has happened is because it is a failure of privatisation…

“The reason Royal Mail is because it's been grossly mismanaged by the current board.”

In a discussion with Bev Turner and Andrew Pierce, he continued: “Royal Mail inflicted financial problems on itself when it gave away £650 million when there was an economic downturn. It never supported the workforce, it's actually attacked the workforce.

“We find ourselves in a problem, we don't like what we're hearing. Of course, we're worried, we need to understand more about that. We don't like what the current board's direction is, because they're not taking Royal Mail anywhere.

“Equally, our view is it's time for the UK to have a serious discussion about a new model of ownership and I think the Government, the Labour Party, the public should all be part of that debate going forward.”

He added: “Our policy has always been to see Royal Mail re-nationalised, but we understand that in the current political environment and economic environment, that might be a difficult thing to contemplate.

“But there are lots of other models where the workers and customers who rely on the services that Royal Mail provides have a greater say over the direction of the company.

“There's things like not-for-profit organisations, there's things like public benefit companies, and I do really think this is a serious debate about how do you protect and grow a business in the future that is so critical to the UK economy.”


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