(Alliance News) - Royal Mail PLC on Tuesday said it has reached agreement with the Communication Workers Union to end a long-running dispute on job security and pay.
The CWU hailed the accord, marking the end of a two-year dispute and bringing "closure to one of the most adversarial periods of our history."
The agreement includes a 2.7% pay increase backdated from April 2020 and a further pay rise of 1% effective April next year, plus a one-hour reduction in the working week.
The union said Royal Mail has committed to avoid compulsory redundancies as change is deployed and the next joint review of this will be in May 2023.
The agreement allows the FTSE 250-listed postal operator to make "more frequent" revisions to the network and introduce the use of technology to improve both customer service and efficiency.
"We have a window of opportunity to focus Royal Mail on what our customers want today - an ever growing need for more parcels, whilst providing a sustainable letters service. This agreement provides a framework to do just that, but the proof will be in the pudding. We have been far too slow to adapt in the past and now need to deliver change much more quickly," said Interim Executive Chair Keith Williams.
The CWU said the agreement recognises that parcel growth is "essential" to Royal Mail's future, and thus a 24/7 operation will be developed and Sunday deliveries and new automated parcel hubs introduced.
Following a recent vote in favour by the CWU Postal Executive, the union will now put the final deal to a vote of its members.
On trading, Royal Mail said it continued to see strong parcel growth during October and November.
In Royal Mail, revenue in the eight months to November was GBP380 million higher compared to a year ago, driven by online shopping, lockdown restrictions and the beginning of the peak festive period.
In GLS, revenue was up 22% in the eight months, driven by continued growth in B2C and international volumes, including some positive impacts on volume from new lockdown restrictions.
Shares in Royal Mail were up 1.5% at 328.20 pence in London on Tuesday.
By Lucy Heming; lucyheming@alliancenews.com
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