LONDON, Sept. 10 (UPI) -- The British government plans to give Royal Mail employees "a real stake in the business" while seeking private investment, a Cabinet member said Friday.
Business Secretary Vince Cable said a report by Richard Hooper, former deputy chairman of the communications regulating agency Ofcom, confirms the government's view the postal service cannot survive without major changes, The Daily Telegraph reported. Hooper, updating a report commissioned by the Labor government, said the Royal Mail must modernize to survive.
"He paints a very clear picture," Cable said. "Royal Mail is facing a combination of potentially lethal challenges -- falling mail volumes, low investment, not enough efficiency and a dire pension position."
The government will introduce a parliamentary bill this fall, Cable said.
"It will draw heavily on Hooper's analysis and recommendations and the government's wider objectives, including the need for employees to have a real stake in the future of the business," he said.
Billy Hayes, general secretary of the Communication Workers Union, called privatization "old politics" and warned of job actions to fight it.