Royal Mail Strikes to End as Postal Workers Accept Pay Offer

(Bloomberg) — Royal Mail’s pay offer has been accepted by workers, signaling the end of months of strikes at the UK postal service and a bitter feud with trade union bosses.

Members of the Communication Workers Union voted to accept a package including a 6% rise this year and a one-time bonus of £500 ($645), the labor group said Tuesday. More than three quarters of votes backed the deal.

The ballot had been frozen in May as the CWU accused Royal Mail of a “culture of imposition, command and control” but was resumed following talks with company executives.

Part of the settlement is an agreement between the two parties that there would be no compulsory job cuts until April 2025, when the agreement expires. Royal Mail is a division of International Distributions Services Plc.

IDS welcomed the outcome of the ballot, which it said would stabilize the business while driving efficiencies. The deal includes seasonal working patterns and Sunday shifts to help develop its seven-day parcels delivery service.

Royal Mail reported an operating loss of £1 billion earlier this year, partly blaming its inability to reform the business due to the dispute with the CWU. The postal service also came under investigation by communications regulator Ofcom earlier this year for failing to meet delivery targets.

Simon Thompson stood down as chief executive officer in May after he was criticized by members of Parliament. Thompson was recalled to Parliament after the politicians were unconvinced by his response to accusations that Royal Mail was tracking its workers and prioritizing parcels over letters.

Dave Ward, the CWU’s general secretary, said Thompson’s replacement would be crucial to relations between the company and his union. “If the new CEO is someone that wants to take the workforce with them then this company can have a bright future,” he said, following the ballot. “If the same old mantras continue, then Royal Mail Group as we know will be finished forever.”

(Updates with responses from company and union, and detail throughout.)

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