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Postal workers demand further protections amid takeover

The Post Office accepted a £3.6 billion takeover offer from Czech billionaire Daniel Křetínský

The Communications Workers Union (CWU), the union representing most UK postal workers, has claimed that the contracts of a new takeover agreement do not “go far, or long, enough” to protect workers.

Royal Mail is set to be taken over by Czech billionaire, Daniel Křetínský, after the organisation's leaders accepted a £3.6 billion takeover offer last Wednesday (29 May). 

The union called for a new business model in response, which, if implemented, would give workers a stake in the company and link workers' pay to the success of the business.

During times of organisational change, HR is responsible for attempting to minimise employees’ uncertainty, business consultant Garin Rouch, of Distinction Business Consulting, told HR magazine.

He said: “HR professionals play a crucial role in managing transitions. This process often triggers anxiety and uncertainty among employees. 


Read more: How to drive successful change


“It’s important to ensure the organisation doesn’t go into a deep freeze awaiting the outcome of a long, drawn-out process; 10% of all large mergers and acquisitions are cancelled each year, so it’s important to keep the organisation functioning.”

Improved internal communications could offer employees certainty during such change, suggested Eleanor Twedell, founder of consultancy Another Door.

Speaking to HR magazine, she said: “The single biggest thing an organisation can do is invest in helping people understand how to navigate change, and own it for themselves.

“Through organisational change it's important to dial up internal communications. It's time to set out a clear framework of how you are communicating to employees and set out regular channels to reduce uncertainty and rumours.”

Rouch added that HR could extend communication to unions, to reassure employees of their position amid mergers and acquisitions.

The CWU is expected to meet with Křetínský to get further assurances about worker protections, The Guardian reported on Friday (31 May).


Read more: Hot Topic: Should employees choose between HR and employee representatives?


Rouch continued: “With the Royal Mail situation, it’s important that the HR team is actively engaging with the unions, to maintain a sense of inclusion and fairness. 

“Similarly, in the Virgin Money-Nationwide merger, assuring employees that there will be no immediate material changes to employment terms can help in maintaining trust and stability.”

Virgin Money shareholders voted for its takeover by Nationwide on 23 May. Representatives of Virgin Money stated that they have no plans to make changes to Virgin Money's 7,300 employees "in the near term". However the Competition and Markets Authority announced on Friday (31 May) that it will examine whether the merger would result in a substantial lessening of competition within the UK banking sector.

Simon White, chief people officer at employee engagement platform Blink, added that HR could help employees understand why organisational change is happening.

He told HR magazine: “The reality is that not everyone will be happy with change. Some people prefer the status quo, regardless of whether the change is better or worse for them. 

“The aim should be understanding: do people understand the why of the change? Once they understand the why, you can share the who, what, where and how. But omitting to be clear on the why is a road to failure.

“Simply being there for people – empathising with their situation and ultimately helping them understand the change as clearly as possible – is the most effective people approach in my experience.”