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Talks between Royal Mail management and the CWU have concluded without an agreement being reached – and predictably there’s also a disagreement about the lack of an agreement.
The Communication Workers Union issued an update this morning (5 April), stating that the latest talks with Royal Mail had ended last night.
“The company advised the union that the directors who have been leading the negotiations are no longer available and that the board will be meeting today to determine their next steps,” the CWU said.
The protracted dispute over wages and terms has now been going on for nearly a year, with 18 days of strike action by CWU members so far and a mandate in place for further strike action.
A Royal Mail spokesperson 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 £1m 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.”
Royal Mail also said that it had increased its pay offer, and extended it until April 2025, with two options on the table: Option A: a 2% pay rise from April 2022 (this has already been paid), 6% from April 2023 plus a lump sum of £500, and 2% from April 2024; or Option B: a 2% pay rise from April 2022 (already paid), 2% from April 2023 plus a lump sum of £1,500, and 6% from April 2024.
Allowances would also be maintained for existing employees, while a profit share scheme was also proposed “so that we all benefit when we get Royal Mail back to profitability”.
However, in response the CWU stated: “The company have published selected aspects of their latest offer directly to employees and claim that the main sticking point is new entrants terms and conditions. This is not true.
“We have seen these actions throughout this dispute from the employer and we know you will not be fazed.”
The CWU also reiterated its position that “unacceptable pressures” were deliberately being placed on its members via imposed revisions “that are failing quality of service and USO [Universal Service Obligation] compliance”.
Royal Mail has also apologised after a manager at its Gloucester North branch shared an ‘April Fool’ stating that the two parties had reached agreement including an 11% pay rise backdated to April 2022.
The CWU tweeted that some of its members working at Royal Mail had already been sacked for sharing social media posts about the dispute: “Manager winds up whole office – all forgotten. CWU members share funny memes – sacked. Double standards by Royal Mail. And we will continue to expose them.”
A reminder that hundreds of CWU members are dismissed or suspended for much less than this 😡 https://t.co/I60KDOmihW
— The CWU (@CWUnews) April 4, 2023
The increasingly bitter dispute has hoisted a question mark over the future for Royal Mail, with speculation that it could even end up in administration.
Last week Vesa Equity Investment, co-owned by Czech billionaire Daniel Křetínský, increased its stake in Royal Mail’s parent group International Distributions Services (IDS) to more than 25%.
The IDS share price has fallen by more than 11% over the past month, and is down nearly 35% over the past year. Shares were at 217.00p at the time of writing (52-week high: 363.90p, low: 173.65p).
