09:41 13 September 2013
The UK government has confirmed news that Royal Mail will be privatised in coming weeks. This is considered one of the most ambitious privatisation for a generation and is expected to anger postal workers.
Under the plan, employees will be given 10per cent of the shares while the rest will be sold to members of the public and institutional investors. Members of the public can buy in shares for a minimum purchase of £750. Meanwhile, UK-based Royal Mail employees will be given the option to apply for additional shares under an employee priority offer with a minimum application of £500.
However, union (CWU) has been threatening to strike action over the privatisation despite the fact that they were offered 8.6per cent pay increase. The union has already rejected the offer and say that they are concerned over the impact of the move on conditions and jobs.
Business minister Michael Fallon reassured workers that Royal Mail and its six-day-a-week service was protected.
He told BBC news: "It is the law - it's an Act of Parliament that was passed two years ago and only Parliament could ever change that.”
"I can't think of any political party that would want to reduce the service that we all rely on."
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