
The UK Labour Government agreed to the sell off of Royal Mail on 16th December 2024 to Czech billionaire Daniel Křetínský .
The UK Business Secretary, Jonathan Reynolds, said that it was a significant deal that ‘contains commitments that protect, and secure investment in, Royal Mail’s postal network which is important to everyone from small business owners in Southampton to online shoppers in Shetland.’
EP Group Chairman Daniel Křetínský made a large part of his incredible wealth in Central and Eastern Europe. Despite the Russian invasion of Ukraine one of his companies Eustream, continues to trade with Russia under an agreement with the EU. It transports Russian gas via pipelines that run through Ukraine, the Czech Republic and Slovakia.
The Royal Mail, once the envy of the world, has been reduced over the recent decades to find itself now owned by a Czech billionaire. How has it come to this ?
Past Kings have always known the importance of having a fast, efficient and secure postal service. It was one of the actions of James VI, King of Scots, when he took up the throne of England, that he established a royal postal service between London and Edinburgh. He was a King who understood all about the control of power. As did Henry VIII of England who in 1516, established the position of Master of the Posts. It was the ‘Royal Mail’.
The Post Office Act 1660 of King Charles II established the GPO – General Post Office.
Lots of innovations took place over the next couple of centuries including universal postage (the same rate paid wherever you lived), postage stamps, pillar boxes, mail trains, and air mail. During two world wars the delivery of mail continued sometimes bringing very sad news in the death of a loved one. It was vital in boosting the morale of service personnel in the front line, and even those incarcerated in Prisoner of War camps received mail. Where would the romances that blossomed between service men/women and the sweethearts who waited at home have been without Royal Mail ?
Royal Mail, the delivery of letters and parcels, was during this time combined with the Post Office counter operations. In the last half of the 20th Centuries both Labour and Tory Governments encouraged the creeping privatisation of the Post Office/Royal Mail (very like what is happening currently in our National Health Service).
Successive Conservative Governments had in the past looked into privatising the UK’s postal services but with a backlash from many of their own MPs and public disquiet these plans were watered down. Then in 2010 The Liberal Democrats went into a Coalition Government with the Conservatives and the privatisation of this once great national institution could really get underway. The Postal Services Act 2011 was passed. The Act allowed for up to 90% of Royal Mail to be privatised, with at least 10% of shares to be held by Royal Mail employees.
Then on 1st April 2012, Post Office Limited became independent of Royal Mail Group, and was reorganised to become a subsidiary of Royal Mail Holdings, with a separate management and board of directors. A 10-year inter-business agreement was signed between the two companies to allow Post Offices to continue issuing stamps and handling letters and parcels for Royal Mail. The Act also contained the option for Post Office Ltd to become a mutual organisation in the future.
Today Post Office Limited is a company owned by the UK Government. The Post Office is owned by the UK Government, through the Department for Business, Energy and Industrial Strategy (BEIS) and UK Government Investments (UKGI), however, the Post Office Ltd Board has responsibility for the operations of the Post Office.
In November the Post Office announced that it proposed sweeping closures of many of its Crown Branches, including the one in Kirkwall – all part of its Transformational Plan.
The EP Group which has now taken over Royal Mail has reached negotiators’ agreements with the unions representing Royal Mail’s workforce. Remember – some of the front line workers that kept us all going during the Covid-19 pandemic lockdowns.
Communication Workers Union General Secretary Dave Ward said:
“We are pleased to have reached a negotiators settlement with EP Group covering crucial areas such as job security, the governance of the company, a meaningful stake in the business for employees, restoring quality of service, legally binding commitments and improving the terms and conditions of our members.
“This agreement provides the foundation to rebuild Royal Mail. These have been challenging negotiations but through the support of our members we have delivered what by any measure is a ground breaking agreement which puts postal workers and customers back at heart of everything Royal Mail does.”
It seems yet another part of Labour’s 2024 Manifesto to ‘change Britain’, is on course. What that Britain will look like with foreign ownership of a major communication network once an iconic brand only Sir Keir Starmer might know. The man who reneged on his promises to the WASPI women on delivering justice to them over their pension rights. The man who kept the 2 Child Benefit Cap – or Rape Clause – the most significant contributor to the rise in child poverty in the UK. The man who removed universal Winter Payments from our pensioners, many of whom will suffer this winter from respiratory problems brought on by inadequately heated homes.
The not so Royal Mail – is a poor relic of what it once was as an important courier service for Royal and Government documents. Now sold off by that very establishment it helped to maintain for over 5 centuries.
Fiona Grahame






Leave a Reply