International Distributions Services says CWU members back pay deal

International Distributions Services PLC on Tuesday said members of the Communication Workers Union have backed a deal on pay and changes to working practices.

The owner of Royal Mail said 76% of eligible CWU members voted in favour of the three-year agreement, bringing months of industrial action and disruption to UK postal services to an end.

IDS said the agreement provides Royal Mail with a platform for the next phase of stabilising the business whilst continuing to drive efficiencies and change.

Key initiatives in the pact include later start times, seasonal working patterns, optimised single parcel network for larger parcels, more efficient indoor mail preparation and Sunday working.

The pay deal includes a 10% salary increase and a one-off lump sum of £500 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.

In addition, 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.

In May, Royal Mail reported a £1 billion loss, with bosses blaming strike action by workers and a failure to increase productivity for its poor performance.

The poor performance led IDS to report an overall loss of £748 million for the year to March 26 compared with a profit of £577 million a year earlier.

The bitter dispute saw the resignation in May of Royal Mail Chief Executive Simon Thompson.

Shares in International Distributions Services closed 1.0% higher at 234.50 pence each in London on Tuesday.

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