CWU reaches pay deal; Royal Mail owner becomes chair

It follows weeks of negotiations between Royal Mail owner EP Group and the postal workers’ union over pay, working conditions and the Universal Service Obligation (USO).

The agreement will now be debated and voted on by the CWU Postal Executive in line with union rules, with dates yet to be released. 

In a statement posted on X, signed by CWU general secretary Dave Ward and CWU deputy general secretary postal Martin Walsh, the union said: “If it is endorsed by the Postal Executive we will share the full details of the agreement as part of an extensive communications exercise ahead of a full members ballot.”

According to the statement, the negotiators agreement covers pay and issues related to section 5 of the December 2024 EP Group / CWU agreement.

Improvements to sick pay, pay equalising new entrants’ terms and conditions, reviewing overtime and scheduled rates were among commitments the union has sought to negotiate with Royal Mail.

Any pay settlement reached will be backdated to 1 April 2025, the union previously confirmed. Specifics have not been detailed at this time.

Meanwhile, new Royal Mail owner, Czech billionaire Daniel Kretinsky, is to become chairman of both Royal Mail and its parent company International Distribution Services (IDS), his investment firm company EP Group announced on Friday (27 June). 

Kretinsky added on Friday that it had allotted and issued a £1 “golden share” to the British government, as agreed in the deal. This ensures the Royal Mail retains its headquarters in Britain and would continue to pay UK taxes, according to Reuters.

It follows the £3.6bn Royal Mail takeover deal by EP Group, approved by shareholders in April. The company also appointed former UK trade minister Greg Hands as a full-time strategic adviser earlier this month.