More strikes loom as Royal Mail union CWU rejects pay rise and bonus

Royal Mail strike talks have collapsed after union leaders rejected a 10pc pay rise plus a bonus of up to £1,500.

In an announcement that raises the spectre of a fresh wave of postal strikes, Royal Mail said it was “deeply concerned” that talks had failed to reach an agreement.

A 10pc pay rise over the next three years as well as lump sum options of either £500 or £1,500 was rejected by the Communication Workers Union (CWU), in the latest twist to an industrial dispute that has dragged on for almost a year.

The CWU’s 115,000 postal members were also offered a profit share arrangement as part of an agreement that would lead to sweeping workplace reforms.

A spokesman for Royal Mail said: “After 11 months of talks, including mediation by Sir Brendan Barber and Acas, we are deeply concerned that our talks with CWU have concluded without an agreement.

“We made substantial efforts to reach an agreement, including making a number of further improvements to our offer. These improvements were all based on feedback from the CWU, and we were hopeful that the CWU would put a deal to its members.  

“We remain committed to reaching an agreement with the CWU. We have been clear throughout the dispute that not transforming our network and working practices is not an option in a business losing more than £1 million a day. In the best interests of the business, our customers, and the job security of our postmen and women, change cannot be delayed any further.”

The collapse thrusts Royal Mail and union counterparts into virgin territory in an existential fight over the future of the postal monopoly.

It is expected that Royal Mail, led by Keith Williams and Simon Thompson, who are chairman and chief executive respectively, will begin unilaterally imposing workplace reform on its employees.

The only change that Royal Mail cannot do without union consent is to force staff to begin work later so that deliveries can be made over a longer period of the day.

A ramp-up of Sunday services will likely result in a greater number of agency staff being used.

Shares in Royal Mail’s parent company, International Distribution Services, fell 1pc on the news.