A “landmark” deal has been agreed to end a long-running dispute on job security, pay and hours for Royal Mail workers.
The Communication Workers Union (CWU) said it was an “excellent agreement” for postal workers, customers and the company.
The settlement includes a two-year pay deal backdated to April, worth 3.7%, plus a one-hour reduction in the working week, said the union.
As the business introduces change, there will be no compulsory redundancies and the stated objective of Royal Mail is now one of job creation, said the CWU.
CWU Royal Mail Group
CWU Live at 4:30pm with @DaveWardGS and Terry Pullinger
A deal has been reached between Royal Mail and the workers union following a two-year dispute over job security, pay, and hours.
The settlement includes a two-year pay deal backdated to April, worth 3.7%, and a one-hour reduction in the working week, according to the Communication Workers Union.
The CWU said there will be no compulsory redundancies and that the business s objective would instead be one of job creation.
It means Royal Mail can move ahead more easily with planned changes, including developing a 24/7 operation for parcels and new technology and automation.
Royal Mail s interim executive chairman Keith Williams said: We have a window of opportunity to focus Royal Mail on what our customers want today - an ever-growing need for more parcels, whilst providing a sustainable letters service.
Royal Mail settles industrial dispute over pay and operational changes
Royal Mail has reached an agreement with its largest union, the Communication Workers Union after a two year dispute over strategy and pay.
“Royal Mail and CWU have committed to rebalance our focus and resources from the declining letters to the rapidly growing parcels marketing, creating a more efficient business that is better aligned to the changing needs of customers,” the FTSE 250 firm said in a statement.
The CWU separately said that they had jointly agreed to a reversal of the direction Royal Mail were taking under previous senior management.
A “landmark” deal has been agreed to end a long-running dispute on job security, pay and hours for Royal Mail workers.
The Communication Workers Union (CWU) said it was an “excellent agreement” for postal workers, customers and the company.
The settlement includes a two-year pay deal backdated to April, worth 3.7%, plus a one-hour reduction in the working week, said the union.
As the business introduces change, there will be no compulsory redundancies and the stated objective of Royal Mail is now one of job creation, said the CWU.
CWU Royal Mail Group
CWU Live at 4:30pm with @DaveWardGS and Terry Pullinger
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However, he warned the ‘proof will be in the pudding’, adding: ‘We have been far too slow to adapt in the past and now need to deliver change much more quickly.’
Royal Mail shares rose by 1.1 per cent or 3.4p to 326.7p, close to the listing price of 330p in 2013. The shares peaked above 630p in 2018 but sank below 125p this year.
The explosion in internet shopping during the pandemic has sent parcel volumes soaring but hammered letters, causing a £133million half-year loss.
Royal Mail needs to rapidly expand parcel services to replace tumbling letter revenues, but efforts to introduce more automation have met fierce resistance from the CWU over fears of job losses.