A deal agreed by the postal workers’ union and Royal Mail could bring an end to the long-running dispute over pay and conditions.
The agreement includes a 10% pay rise over three years and a one-off lump sum of £500, as well as a profit share scheme under which, if the company reaches adjusted operating profit, 20% of it will be paid to employees.
There will be no compulsory redundancies for the life of the agreement and no compulsory Sunday working, although new employees will be required to regularly work on Sundays.
The agreement also covers later start times, changes to sick pay, attendance standards and ill health retirement.
Royal Mail warned earlier this month that further strikes could result in the postal service going into administration.
Its parent company, International Distributions Services, has said that 18 days of strike action in the second half of 2022 had cost the company £200m in lost business and in covering striking staff.
Both Royal Mail and the Communication Workers Union (CWU) have welcomed the new agreement, which is due to be voted on by members of the union.
International Distributions Services said that it represents “a good outcome for customers, employees and shareholders”.
Dave Ward, general secretary of the CWU, said: ”We are completely satisfied that if people look at this agreement in the context of the magnitude of this dispute they will see this as a good agreement that will stand the test of time.”
