Royal Mail and CWU union reach deal on terms and conditions

http://www.theguardian.com/uk-news/2013/dec/04/royal-mail-cwu-union-deal-strike-christmas-post

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Royal Mail and the Communication Workers Union (CWU) have reached a settlement on workers' terms and conditions at the recently privatised company.

The CWU keeps the option to strike until the deal is ratified but there will be no strike in the run-up to Christmas.

The two sides have been a long-running dispute that hung over Royal Mail's controversial flotation in October.

In a statement, the CWU said: "This proposed agreement covers pay, legal protections for terms and conditions, industrial stability and pensions. The proposed agreement will now be considered by the union's postal executive over the next few days and will ultimately be subject to a ballot of the union's members."

The union, which opposed privatisation, rejected an 8.6% pay increase over three years and a lump sum payment of £300 in July. It wanted a legally binding agreement to provide protection for jobs, pay, pensions and union representation under new ownership.

The union said it would publish details once its executive had met and that until the agreement was ratified its threat of industrial action would stand. Royal Mail said the union had agreed not to strike while the deal awaited ratification, including during the Christmas period, which produces much of the company's revenue.

The union threatened to strike during Royal Mail's £3.3bn privatisation. Investment bankers told MPs last month that the prospect of a strike was a major reason they did not ask investors more to buy Royal Mail shares.

However, the CWU called off its strike before the flotation. Royal Mail and the union had aimed for an agreement by last Wednesday when the company posted its first results as a public company but the deadline was extended to Tuesday.

Royal Mail shares were up 1.4% to 588p in late morning trading – close to their record high of 590.5p.

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