 A promise of no compulsory redundancies was made |
The threat of the first national postal strike in a decade has been averted after a deal between the Royal Mail and the Communication Workers Union (CWU). An agreement was reached between the two groups to increase the basic pay of workers by 3.9%.
Job security was also improved with a promise of no compulsory redundancies.
CWU leader Billy Hayes said the settlement was "unprecedented", and Royal Mail boss Adam Crozier said delivery capacities would be boosted.
The above inflation wage increase will also mean Royal Mail paying more than �25 million to its postal staff in the form of productivity payments.
As part of the deal, there will be a 2.9% increase in pay, plus an extra 1% through efficiency savings and no changes to the retirement age or staff pension contributions.
The CWU said the agreement was the "first clear step" towards permanently raising the value and status of postal workers' jobs.
Mr Crozier said as a result of the deal the Royal Mail would be able to increase its ability to deliver advertising material.
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