Daniel Kretinsky, the prospective new owner of Royal Mail, has stated that he is committed to delivering letters throughout the United Kingdom six days a week, as long as he is running the company. Kretinsky’s £3.6bn offer for Royal Mail was accepted by the company’s board in May. Although shareholders are expected to approve the deal in the coming months, the government has the power to scrutinize and potentially block it.
Currently, Royal Mail is obliged to deliver letters six days a week throughout the country for the same price, known as the Universal Service Obligation (USO). In an exclusive interview with the BBC, Kretinsky committed in writing to honouring the USO, but only for the first five years. The USO is a potential sticking point for the government and unions, as questions have been raised over whether the service could be reduced in the future.
Additionally, Kretinsky stated that he would be willing to share profits with employees, but he rejected the idea of employees owning a stake in Royal Mail, which the unions have called for in exchange for their support. The Communication Workers Union (CWU) has stated that it will not support the takeover unless employees receive part-ownership of the company and board representation.
Kretinsky has also guaranteed no compulsory redundancies or changes in terms and conditions until 2025, but the prospects of the company being heavily indebted or potentially broken up remain a concern for the CWU. The union also noted Royal Mail’s poor delivery rate. Last year, the regulator fined the company £5.6m for failing to meet its targets. Business Secretary Jonathan Reynolds has expressed concerns over the deal and called on Kretinsky to work collaboratively with the unions
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