CWU members to vote on Royal Mail pay agreement

The agreement includes a three-year settlement on pay and improved terms and conditions, with details shared by both parties on Thursday (3 July), following weeks of negotiations.  

Members have been recommended to accept the agreement in a members’ ballot, with dates yet to be confirmed.

The agreement includes a 4.2% pay rise in the first year, backdated to 1 April 2025. For years two and three, pay will match inflation (CPI) unless it drops below 2% either year, in which case employees will receive a minimum 2% rise. If inflation rises above 3% a reopener clause, allowing for renegotiation, can be triggered.

Further details include an incentive scheme to offer employees a chance to make additional earnings, a commitment to reduce the use of agency workers and to increase the hours of permanent staff, along with improvements to voluntary redundancy terms.

An agreement has also been reached to decouple the link between pay and Universal Service Obligation (USO) reform.

On equalising new entrants’ terms and conditions, the CWU said, “both parties confirmed their ‘absolute commitment’ to equalisation”. It added that any agreement, “must take into account the time that new entrants have already spent in employment with Royal Mail”.

Further steps regarding this issue will be agreed by September, with a full plan by December this year, according to the union.

The agreement makes up part two of Rebuilding Royal Mail, which builds on the original EP Group/CWU agreement in December 2024.

In a statement on the latest settlement, the CWU said: “This is a pivotal moment in the history of Royal Mail. It builds upon the groundbreaking agreement reached between EP Group, the government and the CWU last December and it is crucial that all members, reps and branches understand the link between the two agreements.

“These two agreements offer everyone the chance to move on from the most bitter dispute in the history of the company and the damaging managerial actions that have continued since.

“There are still many challenges that need to be resolved but the Postal Executive believe that under the ownership of EP Group, Royal Mail are finally starting to negotiate in good faith.”

However, some members have slammed the pay rise, arguing in CWU social media comments that the increase falls short. While others have praised the fact it is a ‘no strings deal’.

The CWU previously rejected multiple pay offers from the employer, including one of around 4% from April.

Alistair Cochrane, interim chief executive officer of Royal Mail, said: “This three-year deal recognises the vital importance of our frontline colleagues in the transformation of Royal Mail.

“It gives our people certainty on pay and the business the stability it needs to deliver our ambitious plans. And if Royal Mail succeeds, our colleagues, company and our customers will all benefit.”

Royal Mail and the CWU announced they had reached a deal over pay on Sunday (29 June), ahead of being debated and voted on by the CWU Postal Executive.