Deal details

Royal Mail agrees 10% pay rise to settle dispute

Royal Mail letters post box

Postal workers held out for nearly a year to reach agreement

Royal Mail has revealed that the agreement reached with postal workers to settle their acrimonious 11-month dispute includes a 10% salary increase and a one-off lump sum of £500.

Communication Workers Union members will put the three-year phased deal to a ballot of its membership with a recommendation to approve.

The agreement involves a previous 2% consolidated pay rise that applied from 1 April 2022, 6% from 1 April this year, and 2% from 1 April 2024.

There is a commitment to no compulsory redundancies over the timeframe of the deal while the company’s workers will receive a one-off payment of 20% of its operating profit.

Also included in the agreement are later start times to help Royal Mail respond to the market demand for more next day parcels, as well as Sunday working and seasonal working patterns with more hours to be worked in the peak Christmas season.

In a statement, Royal Mail owner International Distributions Services said 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,” it said.

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

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