Branches were advised in LTB 138/14 of developments associated with the allocation of additional surplus free shares to employees.
The business have now advised the union that following the government’s announcement in June 2015 of its intention to gift a further 1% of shares to Royal Mail Group employees by way of a transfer of 10 million shares to the SIP Trust, that the Government Shareholder Executive have agreed to place the shares into the SIP Trust with an award date of the 5th October 2015.
We have been advised by Royal Mail that they will be communicating with employees from Friday 4th September 2015 in regard to the approach to the allocation of these further shares to employees. In addition to the shares referred to above, also included in this allocation will be a further 3 million shares that have been forfeited by leavers (e.g. resignations, dismissal etc) and currently are sitting in the SIP Trust.
We understand that the same SIP Trust rules will apply as with the previous award i.e. a 3 year forfeiture period and tax advantage after 5 years.
As previously communicated and advised, the Union’s position on the allocation of free shares to CWU members is that it is a matter for the individual member to determine whether or not they accept them. We understand the allocation will be done on the same basis as previously i.e. individuals have to opt out if they do not want to receive them. This position is and remains the union’s policy.
Against that backdrop and the rush by this Government to sell the public voice in Royal Mail the importance of the ‘Peoples Post campaign’ should be obvious to all. Equally, we will continue to explore the possibility of setting up a trust to ensure we maximise collective voting rights of CWU members within a privately owned Royal Mail Group.
Further information on the trust approach will be issued in due course. Any enquiries on the above LTB should be directed to the DGS (P) Department.
Deputy General Secretary (P)