Institute for Research in Economic and Fiscal issues

IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
and economic freedom

The Royal Mail saga

The UK post office Royal Mail is at least as fervent adept to strikes as the French Poste office. The Unions chose the open clash with the managers, rather than to follow the privatization plan. It is true that the privatization of Royal Mail would compromise a lot of the “traditions” in the company. For example, in the beginning of the decade 10 000 of the 170 000 employees were missing every working day, without any valuable reason. The cost of this absenteeism was 350 mln. of pounds per year.

In order to convince the employees to come to work, the managers had to offer additional compensation – for example a the opportunity to win a car…

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