Following the negotiators’ agreement reached last weekend, the proposals have now been okayed by the CWU’s postal executive and will be put to members via a ballot with a recommendation for approval, which would bring the near year-long dispute to a close.
Described as The Business Recovery, Transformation and Growth Agreement, the three-year pay deal includes a 10% salary increase and a one-off lump sum of £500 for CWU grade employees in Royal Mail and Parcelforce.
This is made up of the previously consolidated 2% pay rise that applied from 1 April 2022; a consolidated 6% pay rise applying from 1 April this year; and a consolidated 2% pay rise applying from 1 April 2024. Plus the one-off lump sum, pro-rated for part-time workers.
A new profit share scheme is also included, which would require a massive turnaround in performance as Royal Mail is forecasting losses of up to £450m in the current financial year. Subject to Royal Mail returning an adjusted operating profit in the financial years up to and including 2024-2025, “20% of adjusted operating profit will be distributed as a one-off payment to employees”.
The agreement also includes a commitment to no compulsory redundancies over the life of the agreement. This will be subject to a joint review in April 2025.
We have reached an agreement with Royal Mail Group.
— The CWU (@CWUnews) April 21, 2023
They came for the postal workers but WE ARE STILL HERE.
https://t.co/Lx6D0dCKYO pic.twitter.com/kAN6XfMbsM
Royal Mail stated: “Royal Mail 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.”
Key changes from Royal Mail’s standpoint include: later start times, a last letter delivery time of 4.30pm, and new seasonal working patterns.
“Delivery postmen and women will work 39 hours per week in the peak Christmas season, 35 hours per week in the quieter summer season, and 37 hours for the remainder of the year to better reflect the seasonal variations in letter and parcel volumes.”
An optimised single parcel network for larger parcels with reduce duplication across the Royal Mail and Parcelforce Worldwide networks, while contracts for new joiners will include a requirement for regular Sunday working.
The CWU leadership hailed the agreement as being “completely unrecognisable” from the one tabled by Royal Mail at the start of this dispute, and even the best and final offer from Royal Mail in December 2022.
“Strike action and your solidarity delivered this,” stated general secretary Dave Ward and acting deputy general secretary (postal) Andy Furey.
“Honesty has got us through this period. That is why it is right we are up front with you and say we know some members may not be pleased with individual aspects of this agreement – this is always the case.
“This dispute was never about avoiding change – it was about change by agreement not imposition. But set against the magnitude of the dispute, the unprecedented set of circumstances surrounding it and the self-inflicted but very real financial crisis the company now finds itself in – this is an agreement that will stand the test of time.
“This ends Royal Mail Group’s appalling mantra of ‘it’s our business to run’ and means we can move on to creating a business that truly aligns the interests of workers, customers, and the company.”
To the relief of printing industry customers, publishers and direct marketing specialists, the agreement also states that both parties “commit to implement an agreed set of measures to address current issues [and] restore performance where necessary”.
The deal was announced at 11:30am, and had not moved the needle on the share price at Royal Mail parent International Distributions Services at the time of writing.
