Royal Mail and the main British postal union, the Communication Workers Union (CWU), have agreeda deal to raise pay for postmen and women. The agreement removes the threat of a ballot for
industrial action and allows the company to compete for more business in the increasingly toughpostal services market.Union General Secretary Billy Hayes and Deputy General Secretary Dave Ward met with Royal MailChairman Allan Leighton, Chief Executive Adam Crozier and HR Director Tony McCarthy on Wednesday 28June and shook hands on an agreement resolving all outstanding issues. Talks to finalise how thedeal will be implemented have now been completed.
The agreement confirms the 2.9% pay rise paid from April this year, as well as an additional 1%rise, earned through a productivity agreement between Royal Mail and the CWU in February. Postmen’sbasic pay will increase by a minimum of 3.9%, with the prospect of more if further efficiencies aremade later in the year. In total, more than £25 million will be paid to postmen and women inproductivity payments this year on top of an above inflation pay deal, Royal Mail said.
The agreement, which is subject to final ratification by a ballot of the union membership, willalso see Royal Mail able to increase its capacity in the growing competitive market for unaddressedadvertising mail – where rivals are making clear inroads. At present Royal Mail capacity is limitedby a negotiated cap on the number of items delivered to no more than three per week. At the sametime both the company and union have agreed to start trialling more efficient ways of doing thingsacross the operation.
Royal Mail Chief Executive Adam Crozier said: “This is great news for postmen and women and forour customers. Our people will see increased earnings and our customers will see greater capacitywhere they need it. We’re getting on with tackling the competition – not each other. We can nowmove forward and build on the hard work of our people in turning the business around over the lastfew years.”
Billy Hayes, the CWU general secretary, said: “This is a progressive and unprecedented agreementthat will deliver significant benefits to postal workers. Royal Mail has responded to our clearvision of higher pensionable pay, job security, pension investment and a progressive attitudetowards managing and growing the business.”
