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(Bloomberg) — The UK’s Royal Mail said workers will get a 10% salary increase over several years as part of a final deal with the Communications Workers Union that draws a line under a year-long pay dispute.
The three-year pay deal includes a profit share pact over the life of the accord and a one-off lump sum of £500, Royal Mail parent International Distributions Services Plc said in a statement. Royal Mail will also commit to no compulsory redundancies, which will be reviewed in April 2025, it said. The agreement follows a tentative pact announced in a joint statement last weekend.
“The agreement provides a platform for the next phase of stabilising the business whilst continuing to drive efficiency and change,” IDS said in the statement.
The long-running dispute had soured relations between the union and Royal Mail over pay and attempts to make 500-year-old postal service more efficient through automation and flexible shift patterns. Royal Mail has argued that the business has no future if it cannot take advantage of the growing parcels market.
IDS shares rose as much as 1.7% and traded 0.9% higher at 12:33 p.m. in London. They have gained 17% this year
(Updates with comment in thrid paragraph.)
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