Royal Mail has finally reached an agreement with the Communication Workers Union (CWU) to endthe long-running postal dispute across the UK following talks with the union’s representatives.
Under the deal, Royal Mail workers will get a 6.9% pay rise over the next three years from April2010 onwards. Over the same period, the working week will be reduced by one hour to 39 hours.
In addition to these changes in basic remuneration, Royal Mail will pay a total of £1,000 perfull-time individual linked to the introduction and implementation of the planned changes “tofurther reward them for their part in the modernisation of the business and to reflect the scale ofthe transformation Royal Mail needs to implement over the coming years”. The payments will be madepro-rata to part-time employees.
The union plans to ballot its members on the agreement during the next few weeks.
The UK postal operator said this agreement on business transformation paves the way for a strongand successful future for Royal Mail and its people and helps secure the universal postalservice.
With the reached agreement “Business Transformation 2010 and Beyond” Royal Mail Letters wants tocontinue with its much-needed £2 billion modernisation, including the introduction of new automatedmachinery and delivery equipment as well as changes in the working processes. “It also ensures afair reward for our people that reflects the vital part they play in the transformation of RoyalMail,” Royal Mail added.
Adam Crozier, Royal Mail Group Chief Executive, said: “This agreement is good for the businessas it allows Royal Mail to get on with its modernisation, it’s a good and fair deal for our people,and it’s a good deal for our customers as it ensures stability over the next three years. It is areal credit to all those involved – both in the company and the union.”
Mark Higson, Managing Director of Royal Mail Letters, said: “This three-year agreement is animportant achievement for the Letters business and its people and one which breaks new ground inour relationship with the CWU.”
“The agreement allows Royal Mail to compete successfully in the highly competitivecommunications market and to help counter the effect of the ongoing decline in traditional mailvolumes. It enables the business to rapidly complete the introduction of the latest generationsorting technology and new delivery methods to improve efficiency. It also enables us to protect asmany full time jobs as possible while at the same time giving our people the best possible toolsfor the job,” Higson added.
Dave Ward, CWU deputy general secretary, also commented on the deal: “It’s been a long timecoming, but this deal delivers on the major issues which postal workers have fought for. There’s abalance of pay and operational changes which will help offset job losses and ensure our members arefairly rewarded for change.”
He stressed that the agreement recognises the reality of automation, competition and thefinancial challenges facing the company but also puts the interests of CWU members at its heart.“Both sides have committed to improving industrial relations and ensuring a more positive workingrelationship in the best interests of everyone at Royal Mail.”
