Deal brings pay and job security for postal workers

8th March 2010

The Communication Workers Union has reached a deal with Royal Mail which brings a pay rise in excess of 6.9 per cent over the next three years, reduces the working week and brings greater job security to postal workers while delivering business transformation. In addition, 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 per cent.

Dave Ward, CWU deputy general secretary, said: "It's been a long time coming, but this deal delivers on the major issues which 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, 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."

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

The agreement is over 80 pages long and covers lots of industrial detail for different areas of Royal Mail. The key areas are:
· Pay: increases to basic pay of over 6.9% over three years broken down as:
o 2% in April 2010
o 1.4% in April 2011
o 3.5% in April 2012
· Pay: lump sums likely to exceed £2,500 paid as:
o £400 for each full time employee (and pro-rata) on ratification of the agreement
o £1,000 per full time employee (and pro-rata) linked to delivery of planned changes in each workplace.
o Payments of bonus payments at their value in 2011 and 2012 - these should increase in value as transformation improves the position of the business.
· Pay: opportunities to turn allowances (and in delivery door-to-door payments) into regular additions to basic pay starting with an immediate payment of £20.60 per week for delivery staff (equivalent to 5.9% pay increase) and £8 per week for mail centre staff (equivalent to 2.3%).
· Shorter working week - reduced by one hour to 39 hours gross, 35 hours 40minutes net for the vast majority of postal workers
· Job security - agreement to maintain at least 75% of workers as full-time with no forced move for any worker from full time to part time or vice versa
· Job security - improved terms are available for people moving to alternative offices as a result of the changes and a commitment to continue making changes through voluntary means.
· Improved maternity pay from 18 to 26 weeks and paternity pay from one to two weeks.

· Saturday as a normal working day for deliveries, but with opportunity for people to have more Saturdays off if they want them. A joint innovative approach to duty patterns to meet business needs and employee aspirations.
Full agreement available to read on the CWU website at: www.cwu.org/royal-mail-dispute.html

Join in the Mirror debate here at: http://blogs.mirror.co.uk/money-questions/2010/03/price-of-peace-at-royal-mail-5.html

Yours sincerely

Graham Clough

Branch Secretary

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