Royal Mail workers win 3.7% pay deal as parcel revenue soars
Postal workers have ended their long-running dispute with Royal Mail and agreed a 3.7% pay rise as the company refocuses to cash in on the lucrative parcels market.
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The news came as the company reported strong parcel growth during October and November with Royal Mail revenue up £380m in the eight months to November compared to the same period last year, driven by e-commerce activity, lockdown restrictions during November and the beginning of the peak Christmas period.
The settlement includes a two-year pay deal backdated to April and one-hour reduction in the working week, the union added. There would also be no compulsory redundancies as the business introduced change, the the Communication Workers Union (CWU) said on Tuesday.
Royal Mail and the CWU said the company could now introduce changes more quickly with the full support of the union including the development of a 24/7 operation for parcels, and the rollout of new technology and automation.
“The agreement will allow Royal Mail to make more frequent revisions to the network and introduce the use of technology to improve both customer service and efficiency. Deployment of revisions and realignment activity is planned for all operational areas by the end of October 2021, with annual revisions thereafter,” Royal Mail said in a statement.
Both sides have been locked in a bitter dispute for two years over changes to the business to reflect declining letter volumes and a rise in online shopping that has seen Royal Mail’s parcel service booming, especially during the Covid-19 pandemic.
Interim executive chairman Keith Williams said the deal presented the company with a window of opportunity to focus Royal Mail on what our customers want today – an ever-growing need for more parcels, whilst providing a sustainable letters service.
“This agreement provides a framework to do just that, but the proof will be in the pudding. We have been far too slow to adapt in the past and now need to deliver change much more quickly.”