International Distribution says Royal Mail agrees deal with union

(Alliance News) – International Distribution Services PLC said on Friday that an agreement had been reached between Royal Mail and the Communication Workers Union, which it said “represents a good outcome for customers, employees and shareholders.”

The London-based postal and delivery holding company, which includes Royal Mail and GLS, said the agreement was ratified by CWU’s postal executive committee.

It will be put to a ballot of CWU members with a recommendation to approve. The ballot is expected in the coming weeks.

International Distributions said the agreement includes a 10% salary increase and a one-off lump sum of GBP500 for CWU grade employees in Royal Mail and Parcelforce. This includes a consolidated 6% pay rise applying from April 1, and a consolidated 2% pay rise applying from the same time next year.

International Distributions also said an agreement was reached on a profit share scheme, with 20% of adjusted operating profit to be distributed as a one-off payment to employees, subject to Royal Mail returning an adjusted operating profit in any financial year up to and including 2024 and 2025.

International Distributions said that key initiatives in the agreement included later start times in part to help Royal Mail respond to the market demand for more next day parcels, and new seasonal working patterns to better reflect variations in letter and parcel volumes. New employee contracts will include regular Sunday working requirements, it said.

International Distributions reported a commitment to no compulsory redundancies for the life of the agreement. It said there would be a joint review of this position in April 2025 to consider whether circumstances would allow for the company to extend this commitment.

The agreement also covers changes to sick pay, attendance standards, ill health retirement, and agreement on revised contracts for new starters, which were introduced last year.

International Distributions said: “The agreement provides a platform for the next phase of stabilising the business whilst continuing to drive efficiency and change. The operational changes in the agreement are designed to improve competitiveness, particularly in next day parcels, reduce cost and environmental impact, and improve quality of service for our customers.

“A three year pay deal will provide certainty for our employees and ensure Royal Mail remains the industry leader on pay, terms and conditions.”

International Distributions’ shares were up by 0.2% at 246.66 pence in London on Friday afternoon.

By Emma Curzon, Alliance News reporter

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