Royal Mail is facing a national security investigation over concerns that Czech billionaire Daniel Kretinsky is planning to hike his stake in the company, just as its summer of strikes is set to kick off.
Business Secretary Kwasi Kwarteng told the delivery firm this afternoon that he “reasonably suspects” that Kretinsky is looking to boost his 22 per cent stake in the company to over 25 per cent via Vesa Equity Investment.
The move would in turn trigger an investigation under the National Security and Investment Act for Royal Mail.
Kretinsky is notably a major investor in West Ham United and holds a stake in Sainsbury’s.
To make matters worse, Royal Mail is also facing the biggest strike of the summer tomorrow, with 115,000 postal workers coming out to strike in a series of walkouts.
The Communication Workers Union (CWU) General Secretary Dave Ward said: “We can’t keep on living in a country where bosses rake in billions in profit while their employees are forced to use food banks.
“When Royal Mail bosses are raking in £758 million in profit and shareholders pocketing in excess of £400 million, our members won’t accept pleads of poverty from the company.”
Meanwhile, Royal Mail said the upcoming action “thrusts Royal Mail into the most uncertain time of its 500-year history”.
A spokesperson said this afternoon: “It is putting jobs at risk and making pay rises less affordable. We are losing £1 million a day. We must change to fix the situation and protect high quality jobs.”
They added that the CWU’s plans “come with a £1 billion price tag, are predicated on a wholly unrealistic revival in letter writing, and prevent Royal Mail from growing, and remaining competitive, in a fast-moving industry”.
“The CWU’s vision for Royal Mail would create a vicious spiral of falling volumes, higher prices, bigger losses, and fewer jobs,” they added.
CWU members will take further action on 31 August, and 8 and 9 September in a bid for a “dignified, proper pay rise”.
The post Royal Mail faces national security probe as strike action looms appeared first on CityAM.
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