Royal Mail’s Descent: Corporate Vultures Circle as Service Teeters

514 words, 3 minutes read time.

The Royal Mail, once a symbol of reliable communication and a vital public service, now stands at a crossroads. Its decline has been palpable, and the very fabric of its operations is fraying. Let us delve into the saga of Royal Mail, where corporate manoeuvring meets the struggles of postal workers.

The Decline of Royal Mail

The once-proud Royal Mail has been brought to its knees. Despairing postal workers, their voices echoing through the cavernous sorting halls, lament the impossible demands placed upon them. Their job, once a source of pride, has become a Sisyphean task. Imagine areas where letter deliveries have vanished for weeks, sacrificed on the altar of parcel prioritization. The dilapidated state of Royal Mail buildings and its aging fleet of vehicles further underscores the crisis. And to add insult to injury, experienced workers have been culled, their institutional knowledge discarded like yesterday’s junk mail.

The Vultures Circle

As the service teeters on the brink, the vultures descend. Among them, a billionaire asset-stripper named Daniel Kretinsky. His eyes gleam with the promise of profit as he eyes Royal Mail’s parent company, International Distributions Services (IDS). Kretinsky’s audacious offer to buy IDS was so low that it scraped the bottom of the balance sheet. IDS, however, stood firm, rejecting the bid. But Kretinsky, undeterred, hovers, ready to swoop again.

Kretinsky’s Calculated Moves

Kretinsky, already a stakeholder with 27 percent ownership, straddles the business landscape. His portfolio includes not only Royal Mail but also a US-European delivery firm called GLS. His plan unfolds like a chess game: dismantle IDS, sell the profitable GLS to a rival, and then turn his attention to Royal Mail.

His belief? Ofcom, the postal regulator, will loosen the shackles of the universal service obligation. No longer will Royal Mail be bound to deliver to every nook and cranny of the country, six days a week. With this regulatory shift, Kretinsky can execute what bosses euphemistically term a “restructuring.” Translation: thousands more jobs slashed, offices shuttered, and depots abandoned. The service will be whittled down to the legal minimum—a skeleton of its former self.

The Parcels vs. Letters Conundrum

In this ruthless calculus, letter delivery—the heart of Royal Mail—will suffer. But the profitable parcels business will thrive. Kretinsky’s vision aligns with the bottom line: profits, dividends, and shareholder satisfaction. The delicate dance between public service and private gain tilts decidedly toward the latter.

Union Busting and Gig Economy Realities

And what of the workers? Kretinsky’s plan hinges on smashing the CWU union. He aims to drive Royal Mail workers’ conditions into the cold embrace of gig economy norms. Zero-hours contracts loom, and union agreements tremble. The human cost—measured in stress, insecurity, and lost livelihoods—becomes collateral damage in the pursuit of profit.

The Czech Sphinx’s Gambit

Daniel Kretinsky, the enigmatic “Czech Sphinx,” plays his hand. His moves are calculated, his vision unyielding. Royal Mail, once a beacon of reliability, now faces a future shaped by corporate machinations. As the vultures circle, the fate of this iconic institution hangs in the balance.

Reporting by Pat Harrington