In what is seen as Daniel Kretinsky’s latest plea for union approval of his £3.6bn takeover bid of Royal Mail, the Czech billionaire has said he is willing to give workers a stake in the business.
According to The Sunday Times, a source close to Daniel Kretinsky said the proposal is “absolutely something we are ready to consider” after talks with the union last week.
This position seems to contradict his views last month when the billionaire told The Sunday Times that giving staff a stake in the business could prove difficult because Royal Mail is a privately owned company.
Kretinksy struck a deal with International Distributions Services (IDS), the owner of Royal Mail, late last month for £3.6bn, but it has been far from sealed.
Under the National Security & Investment Act (NSIA), the government has the power to potentially block the deal if it concludes that national security could be at risk.
The deal must also be supported by shareholders, meaning that the support of the Communication Workers Union (CWU)—which halted postal services for 18 days in 2022 over pay and working conditions—is crucial.
General secretary of the CWU Dave Ward met with Kretinsky’s representatives last week, according to The Sunday Times, to set out his requests.
“We are working out the details and nothing is off the table. I don’t think the two sides are as far apart as you may think,” a source close to Kretinsky told The Sunday Times.
It is said that Kretinsky’s interest in giving workers a stake in the business could satisfy Labour if it takes power in the upcoming general election on 4 July. The party has vowed to “scrutinise” the takeover and give workers a “stronger voice.” However, only time will tell how far he is willing to go.
If the deal goes through – which analysts have doubted – it will take the organisation into fully foreign ownership for the first time and could usher in a series of”modernisation measures” which Kretinsky believes will return the ailing business to profitability.