Royal Mail workers accept pay and conditions deal

Royal Mail workers have accepted a deal to end a long-running dispute over pay and working conditions.

Members of the Communication Workers Union (CWU) have voted in favour of a three-year pay deal and operational changes that maintain job security, improve service quality and support the long-term sustainability of the business.

On a 67% turnout, 75.84% of CWU workers voted to accept the business recovery, transformation and growth agreement, which was brokered between Royal Mail and the CWU earlier this year.

It follows 18 days of strike action in the final quarter of last year.

The deal includes a 10% salary increase, some of which was given in 2022, and a one-off lump sum of £500 for CWU members working for Royal Mail and Parcelforce.

A profit share scheme will also be introduced. Subject to it returning an adjusted operating profit in any financial year up to and including 2024/2025, 20% of adjusted operating profit will be distributed as a one-off payment to employees.

From March 2024, delivery start times will be moved back to help Royal Mail respond to demand for more next day parcels and to reduce its environmental impact by removing 18 flights a day.

New employee contracts will include a requirement for regular Sunday working, while there will be changes to sick pay, attendance standards and ill health retirement.

It will also introduce new seasonal working patterns from autumn 2023. Posties will work 39 hours per week in the peak Christmas season, 35 in the quieter summer season and 37 for the remainder of the year.

The deal includes a commitment to no compulsory redundancies for the life of the agreement, but there will be a joint review in April 2025 to consider whether this should be extended.

Royal Mail said in a statement: “The agreement provides Royal Mail a platform for the next phase of stabilising the business whilst continuing to drive efficiencies and change.

“The operational changes in the agreement are designed to be good for customers, increasing our ability to improve services and quality; good for employees, retaining job security and giving people a pay rise; good for the environment, reducing the company’s reliance on domestic air, further reducing carbon emissions; and good for shareholders, supporting the long-term sustainability of the business.

“The three-year pay deal agreed provides certainty for employees and ensures Royal Mail remains the industry leader on pay, terms and conditions.”

CWU general secretary Dave Ward said: “This has been the most challenging period in both the history of the union and the company, and I want to thank every single member that has voted in this ballot.

“Our members will know it doesn’t end with today’s result – we all know what is going on in workplaces across the UK and we are going to deal with it. Many workers simply do not trust Royal Mail Group because of the company’s lack of integrity and the way they are being treated.

“Some wanted more from an agreement. Others find the prospect of changes such as later finishes unpalatable. Our job in the coming weeks and months is to make sure their voices continue to be heard.”

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