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Royal Mail and CWU to sign deal to settle long-running dispute on postal workers' pay and conditions

Royal Mail has concluded a deal with trade unions to bring a pay rise in excess of 6.9% over the next three years, reduce the working week and bring greater job security to postal workers.

According to the Communication Workers Union (CWU), postal workers will receive lump sums of around £2,500 and weekly basic pay supplements through consolidation of existing money worth between 2.3% and 5.9%.

The 80-page document also outlines that improved terms will be available for people moving to alternative offices as a result of the changes and a commitment to continue making changes through voluntary means.

Maternity pay will be increased from 18 to 26 weeks and paternity pay from one to two weeks. Staff will be given the opportunity to work more Saturdays off if they want.

Dave Ward, CWU deputy general secretary, said: "It's been a long time coming, but this deal delivers on the major issues that postal workers have fought for. There's a balance of pay and operational changes, which will help offset job losses and ensure our members are fairly rewarded for change.

"We have always said that we couldn't face away from change. The agreement recognises the reality of automation, competition and the financial challenges facing the company, but it does so in a way that puts the interests of CWU members at its heart.

"Both sides have committed to improving industrial relations and ensuring a more positive working relationship in the best interests of everyone at Royal Mail.

"We'd like to thank Roger Poole of Acas and Brendan Barber for their efforts over the past months which have helped to secure this successful outcome.

"There has been a lot of talk about the future of the company in relation to competition and the pension deficit. Now that we have reached this agreement it is clear that business transformation can be delivered. As a result we're determined to address the pensions issue and establish whether the Government will now finally accept its responsibilities, as the owner of the company, to find an acceptable solution."

John Taylor, chief executive of Acas, added: "Acas has been highly involved in helping to resolve this long-running dispute, so I'm very pleased that Royal Mail and the CWU have now reached a provisional agreement. There is now a great opportunity for both parties to modernise and transform the business.
 
"I'd like to pay tribute to the hard work of the Acas team, led by chief conciliator Peter Harwood, which has helped facilitate and chair over 50 meetings between the parties. This has enabled various groups of Royal Mail and CWU negotiators to achieve a lasting agreement, running to over 80 pages.
 
"I would also like to record our thanks to Roger Poole for his determination and drive in encouraging the parties to achieve the deal. We echo his sentiments in hoping that it will enable Royal Mail and CWU to go forward together to secure a successful future for the business - in the interests of Royal Mail, its employees and its customers.
 
"The negotiators on both sides also deserve thanks for the sensible and constructive approach they have taken. Talks were not always easy, especially at first, but parties have made great efforts to look for reasons to agree and move forward together with a real desire to create a better, more trusting relationship. That has to be the foundation for a brighter future.
 
"We look forward to hearing that CWU members have accepted the agreement and we stand ready to provide further assistance to support its implementation."

The agreement is subject to a ballot of CWU membership for acceptance.