The UK government is to begin the process of privatising Royal Mail, raising the prospect that the "one price goes anywhere" universal postal service could be scaled back.
The business secretary, Vince Cable, has revealed plans for a bill to enable the sell-off of Royal Mail, which will include offering shares to employees. He appeared to confirm that there could be a total privatisation – going further previous Liberal Democrat and coalition promises.
A YouGov poll last month found a majority of voters of every party oppose privatising Royal Mail with support at only 15 per cent.
Deliveries could be cut back to five times per week. Under existing legislation, Royal Mail is required to provide six deliveries per week of letters at an "affordable and uniform" price to anywhere in the UK.
The ConDem coalition belives that Royal Mail will not be able to afford to carry out this service even though overall its letters business doubled operating profits last year and there is already a fully funded modernisation programme agreed by both management and unions is in place bringing stability to the company.
The Communication Workers’ Union (CWU), who reprsent thoudands of postmen and women, voiced fears that the Government was plotting to "seize" pension assets it said were worth £26 billion.
CWU general secretary Billy Hayes said: "Privatisation is old politics. It's the failed politics of history which brought disruption to Britain's utilities and railways and astronomical prices for consumers. Dangerously in this case, we fear the Government may also be plotting to seize the pension assets.
"Privatisation would be devastating for Royal Mail and the whole country's postal services. The universal service has been a key part of the UK post for 170 years but because it isn't the profitable element of mail, the privatisation will put it at risk.
"This could damage the service for all customers, including millions of small business and potentially harm the UK economy. Privatisation will also mean separation of Royal Mail and the post office network, putting the very existence of many more post offices that play such a key role in Britain's communities at risk.
"Royal Mail has always been a privatisation too far and there is a public majority out there who will vote this Government out for flogging off our national assets and breaking our public services."
Dave Ward, CWU deputy general secretary, said: “Everyone’s a loser if you privatise the Royal Mail. Jobs and services will suffer and customers will see prices soar.
“We’ve put in place a detailed and fully funded modernisation programme which is dramatically transforming Royal Mail. Why does the government want to threaten the stability and capital of this programme when it’s proving a major success?."
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