Staff protect benefits
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by Karen Miles • Parcelforce staff said this week that its new owner will face legal action if it attempts to reduce the level of benefits to the 12,000-strong workforce after privatisation.
The warning comes as the Government says there are "several expressions of interest" in the g600m-turnover stateowned parcels company.
The Union of Communication Workers, which represents about 10,500 staff, says it is seeking legal advice on how best to contest privatisation — including protecting the inflationlinked pensions benefits available to around half of its members. In the run-up to a sale in early 1994 the union is also to lobby MPs and to try to get the subject referred to the Department of Trade and Industry Select Committee for scrutiny. The union is outraged that the sale of Parcelforce requires agreement only from Board of Trade President Michael Heseltine and no Parliamentary debate.
There were strong signals this week that a management buy-out of the whole business from Parcelforce's own directors is the most likely privatisation option.
But it seems that the Treasury may not benefit greatly from the sale. Observers suggest the sale price of the lossmaking parcels giant in the depths of a recession will be low — some predict a price as low as £250m.
Cash-rich Securicor Omega Express has confirmed that it is interested in Parcelforce, especially its customer list for next-day business. US-owned UPS says it is not interested in the privatisation and Australianowned TNT says it will not comment until it has seen the Parcelforce prospectus.