Postal strike averted after deal is agreed

The union said the deal included a three-year pay agreement and a two-hour cut in the working week it estimated was worth 12.3% overall.

The agreement includes the introduction of a “potentially ground-breaking” new pension scheme for all Royal Mail employees, providing the UK’s first “collective defined contribution” scheme and a guaranteed lump sum.

The union said the proposed deal “removes the risk” of strike action.

Terry Pullinger, the union’s deputy general secretary, said: “This agreement represents the successful outcome of months of talks and is testament to the strength of membership support reflected in the union’s huge vote for strike action in October last year.

“The success of our campaign has delivered a substantial pay rise, a shorter working week and a pioneering new pension scheme that will secure our members’ future employment, standard of living and retirement security.

“The CWU therefore welcomes the company’s commitments to re-establish the principles of security, maintain industrial stability and restore our mutual interest culture while protecting the future of a great public service.”

Moya Greene, Royal Mail’s chief executive, said: “This agreement marks a new chapter for Royal Mail and the CWU.

“Following the conclusion of a helpful mediation process and further talks, we have delivered the right result for Royal Mail and our stakeholders.”