As expected, the proposed acquisition of the International Distribution Services business, which owns Royal Mail, has stalled. The deal is to undergo Cabinet Office scrutiny as a result of the CWU placing pressure on the new Labour-led government. The probe could take around two months to complete.
The CWU is particularly keen to ensure that its members are fully protected going forward and is also pressing for Royal Mail employees to be granted a stake in the business should the deal be greenlighted. Businesses, including DCA members, which depend upon the Royal Mail service are deeply concerned by rate rises as well as the impact that the proposed reduction in service levels being mooted will have.
In the broader media, the BBC has (again) flagged that the buyer, Daniel Kretinsky’s close links to Russia warrant a deeper investigation on the grounds of national security.
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