Czech Sphinx will cut up to 1,000 Royal Mail jobs if £3.5bn takeover goes ahead, union bosses warn
Union bosses have warned that the ‘Czech Sphinx’ could push ahead with plans to cut up to 1,000 posts if he succeeds in his bid to buy Royal Mail.
The Communication Workers Union (CWU) will hold talks with billionaire businessman Daniel Kretinsky in early June if a deal is struck.
Kretinsky has until 5pm on Wednesday to make a strong offer for Royal Mail owner International Distribution Services (IDS) or he will walk away.
It comes after the IDS board said it would back his £3.5 billion bid, prompting an immediate backlash from campaigners, unions and politicians.
CWU director general Martin Walsh told the Mail: ‘We are skeptical of Royal Mail and we are skeptical of Kretinsky’s firm. We will be looking for commitments on jobs.”
Deadline: Daniel Kretinsky (pictured) has until 5pm on Wednesday to make a strong offer for Royal Mail owner IDS
It comes as Kretinsky, the billionaire co-owner of West Ham United football club, has backed Royal Mail reform proposals, which would lead to ‘fewer than 1,000’ voluntary redundancies.
These plans include reducing second-tier post to three days a week, paving the way for redundancies that could save around £300 million a year.
Kretinsky has said he would protect workers’ rights and preserve the Royal Mail brand, as well as its British base and tax residence.
But he has remained tight-lipped about job cuts and second-tier posts, suggesting cuts remain on the agenda.
Royal Mail wants to scrap second-class deliveries on Saturdays and reduce them to every other weekday to save money.
Under these plans, there would be up to 9,000 fewer daily routes within two years – resulting in hundreds of job losses.
The proposals require reform of the Universal Service Obligation, meaning Royal Mail would have to offer a service six days a week at a fixed price.
IDS has urged the government and regulators to make changes, saying the obligation is costing Royal Mail up to £675 million a year.
Last week, Royal Mail revealed it lost almost £1 million a day last year when Ofcom launched an investigation into missed mail targets.