Last-minute reprieve for Royal Mail as union agrees pay deal

Royal Mail and union leaders have come to an initial agreement after a bitter dispute over pay, jobs and conditions.

© EPA
The deal could bring to an end a long-running dispute between the Royal Mail and its workers – EPA

The 115,000-strong Communication Workers’ Union (CWU) and the postal service announced they have come to an agreement in a joint statement on Saturday.

Royal Mail said it had reached a negotiators’ agreement in principle with the CWU, with more details to be confirmed next week.

But the long-running dispute between the two is not yet resolved, as the proposed agreement must gain the approval of the CWU’s national executive council. It will then be voted on by its wider membership.

The CWU said: “After almost a year of talks, Royal Mail and the CWU are pleased to announce they have reached a negotiators’ agreement in principle.

“The proposed agreement will now be considered by the executive of the union before being voted on by the union’s membership.

“An announcement on the detailed content of the proposed agreement will be made when it is ratified by the union’s executive committee. It is expected this will take place next week.”

© Provided by The Telegraph
The company said strike action has cost it £200 million in lost business – GETTY IMAGES

Royal Mail and the CWU have been in discussions for almost a year over the biggest overhaul of working practices since the business was privatised under David Cameron in 2013.

The company has said it is losing £1 million a day, with strike action by the CWU costing £200 million in lost business and additional costs.  

The dispute between the union and the mail was beset by collapsed talks and a war of words.

Earlier this month, Royal Mail bosses accused the striking workers of plotting to bankrupt the company and said the CWU were “’becoming more comfortable’ with the risk of administration” during discussions.

CWU leaders then pulled back from announcing fresh strikes by Royal Mail workers.

At the time, Mr Ward said the union’s leaders did not believe more strikes were the right thing to do but there might come a time when more industrial action is called.

CWU general secretary Dave Ward and deputy general secretary Andy Furey said: “We have reached a negotiators’ agreement with Royal Mail group.

“The CWU postal executive will now meet and consider the agreement on Monday and Tuesday and we are putting in place plans to brief representatives across the union’s structures.

“On the basis that the negotiators’ agreement is endorsed by the postal executive, we will put in place a full communications plan to engage members.

“Thank you for your support and patience. It has got us to this point.”

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