Mail carriers to get 10% pay rise as Royal Mail pulls out of CWU deal

Staff will receive a 10% pay increase over three years plus a one-time bonus of £500. Photo: Toby Melville/Reuters

Postal Union leaders relented and agreed to wage increases below inflation after a year-long dispute with Royal Mail.

The Communications Workers Union (CWU) agreed to a 10 percent wage increase for three years plus a bonus of £500. lump sum payment.

For many of the union's 115,000 postal workers, this deal is worse than the previously rejected offer of 9 percent for 18 months.

10% broken down into 2% retroactively from April 2022, a 6% increase from April 1, 2023, a 2% increase from April 1, 2024, and a £500 one-time bonus.

Spread over three years. the wage agreement is well below inflation, which has an annual rate of 10.1 percent.

The deal marks a decline by union chief Dave Ward after his former deputy, Terry Pullinger, who resigned last summer, stated that the CWU would only accept «unconditional awards based on inflation» in July.

The CWU said it had won a series of concessions from the board of Royal Mail, led by former British Airways and John Lewis chief executive Keith Williams, on how to reform its working methods.

Dave Ward, Secretary General of the CWU. , said the union prevented Royal Mail from turning the business into a «gig economy employer» in a letter to members that was signed with an anti-Thatcher slogan.

Among the reforms demanded by Mr Williams and chief executive Simon Thompson, there was a need for postal workers to start work later so that delivery could be spread throughout the day.

Royal Mail wanted to be able to push start times up to three hours. Friday's deal includes a one-hour clause, a union concession that also appears to be at odds with Mr. Pullinger's claims.

There is also a commitment from both sides to restart negotiations to push back start and finish dates even earlier. next, the discussion should resume in March 2024.

About 20% of the company's operating profit will be paid out to workers if it returns to positive.

While Royal Mail is still laying off about 10,000 people, there will be no mandatory layoffs until April 2025.

A CWU spokesperson said: «This situation has only come about because of the sheer determination of every postal worker in this country to stand up for themselves, their jobs and their industry.

«We intend to put this deal to the vote of our members as soon as possible.»

CWU General Secretary Dave Ward's letter to union members was signed «Ima O'Hyde», a reference to the Welsh-language folk song Dafydd Ivan that became synonymous with the Welsh miners' strike against Margaret Thatcher in the 1980s.

The year-long dispute culminated in an 18-day strike in the second half of 2022 with ugly scenes at the picket lines as tensions escalated.

Vesa, Royal Mail's largest shareholder, said: “Vesa welcomes the in-principle agreement reached between IDS and CWU. Royal Mail needs a stable structure in order to better serve its customers and thrive in service quality and innovation.

“This agreement provides just such a stable structure and should be welcomed. Building a strong and competitive Royal Mail is in the long term interests of the company, its employees and the millions of customers across the UK who rely on its services, and we thank the negotiators from IDS and CWU for their hard work getting things done so far.”