Royal Mail Workers offered 10% pay rise over three years after months of industrial unrest

Royal Mail and the Communication Workers’ Union (CWU) have achieved a significant breakthrough in their year-long acrimonious dispute, agreeing on pay and changes to working practices.

The deal, dubbed “Business Recovery, Transformation & Growth”, includes a 10% salary increase over three years, a one-off £500 lump sum payment and a potential 20% share of Royal Mail’s operating profits for staff over the next two years, should the company manage to reverse its current losses.

As part of the agreement, the CWU has accepted changes to delivery start times and Sunday working, which Royal Mail hopes will help the group meet growing demand for online shopping deliveries. The long-running industrial dispute began last year and led to 18 days of strike action across the business.

CWU leaders and Royal Mail senior management discussed the agreement at a national briefing held at Bristol City Football Club’s Ashton Gate Stadium.

General Secretary Dave Ward opened the event and announced that the union’s Postal Executive had formally adopted the agreement.

Ward explained the pay aspect of the agreement and highlighted the joint commitment to growth and quality of service.

Ward strongly criticised Royal Mail’s leadership for taking the company from a £758 million profit to a position where there have been talks of administration.

He said, “They got us into this crisis, and it’s this union and our members that must get us back into the right place again.”

Ward emphasised that the only way to achieve success is through agreed change, with the interests of customers, the workforce, and members aligned.

The deal has been hailed as the most important and significant dispute resolution since the Wapping print dispute of 1986.

Ward praised the union’s resilience, saying, “They thought they were going to get rid of us, but we are still here. We are all over this agreement, and that, in itself, is a major achievement for this union.”

The Royal Mail said the company is “currently materially loss making. This agreement is an important step forward in the turnaround of Royal Mail and, if approved by the CWU membership, represents a good outcome for customers, employees and shareholders.”

“The agreement provides a platform for the next phase of stabilising the business whilst continuing to drive efficiency and change.”

“The operational changes in the agreement are designed to improve competitiveness, particularly in next day parcels, reduce cost and environmental impact, and improve quality of service for our customers.”

“A three year pay deal will provide certainty for our employees and ensure Royal Mail remains the industry leader on pay, terms and conditions.”