THE REALITY OF PRIVATIZATION OF ROYAL MAIL. 1600 JOBS TO BE CUT.

Royal Mail MX55YKC (Photo credit: didbygraham)

The reality of privatization of the Royal Mail Group Plc kicks in again today with the announcement that 1600 administration jobs are to be axed as the company seeks to streamline its operations. The cuts are estimated to deliver £50 million pound savings including £25 million in the 2015 fiscal year                                                                                           The company narrowly avoided strike action last year when members of the Communication Workers Union threatened to walk out. Unite, which represents 7,000 Royal Mail managers, said today it will consider a ballot for industrial action.                                                                                                         "Unite is demanding a commitment to no compulsory redundancies on fair terms and an effective method for redeployment within the restructured organization" Brian Scott, a Unite officer for Royal Mail, said in a statement.                                                              "First the Government sells off Royal Mail on the cheap and now the newly privatized service is ruthlessly sacrificing jobs. We do not believe that its a coincidence that this announcement has been made just before the company prepares to announce its first full set of accounts since privatization. Its more proof that Royal Mails primary reason for existing is more about profits than about serving the nation."                                                                                           After the botched privatization, by Vince Cable, when the shares where valued at 330p they have regularly traded  above the £5 mark, the figure dismissed by Vince Cable as "froth"  the value of the company has soared on the FTSE index of the top 100 London-listed companys and closed last night with shares at 584p.
   

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