CWU rejects new below-inflation Royal Mail pay offer

• 1 November 2022
• Transport / Logistics Services

The postal workers union the CWU has rejected Royal Mail’s latest pay offer, accusing the postal operator of a “declaration of war on posties”. This raises the prospect of further strike action by the union in the run-up to Christmas.

Royal Mail and the CWU have been in negotiations at the arbitration body Acas. Royal Mail has proposed what it calls a ‘conditional pay-for-change-offer’ in an attempt to stop the industrial action that has been crippling the company in recent months.

Over two years, postal workers would be offered a 7% salary increase and a lump sum payment worth 2% this year. In the current year, posties would get a 5.5% increase that includes the 2% already given to them. From April they will be given an additional 1.5%.

The pay offer by Royal Mail is subject to the CWU agreeing to a programme of changes to working patterns including increased hours and alterations to Sunday shifts. It argues that these changes are necessary to allow it to compete in the delivery market.

Royal Mail’s chief executive, Simon Thompson, said on Monday: “Royal Mail made a loss of £219m in the first half of the year. This once again demonstrates that the need for change at Royal Mail is urgent.”

Thompson continued, “We have always been clear that the more we can change the business, the more we will be able to pay our people – both now and in the future.”

The CWU rejected the offer out of hand, referring to the changes as ‘unacceptable’ and calling the pay offer “well below projected inflation for both years”.

A CWU spokesperson said: “These proposals are about dismantling a 500-year-old service and destroying the lives of those who serve it. Make no mistake – Royal Mail bosses have just declared war on your postie.”