Royal Mail CWU Agreement detail

Category: Operations
Royal Mail workers accept pay deal

The details of the latest Royal Mail CWU agreement have been released. Known as the Business Recovery, Transformation and Growth Agreement, it has been ratified by CWU’s Postal Executive Committee and will be put to a ballot of the union’s membership with a recommendation to approve. The ballot is expected in the coming weeks.

The deal has been reached after intensive negotiations over the past several months aiming to stabilise the company which the Royal Mail say is loss making.

The agreement provides a platform for the next phase of stabilising the business whilst continuing to drive efficiency and change. The operational changes in the agreement are designed to improve competitiveness, particularly in next day parcels, reduce cost and environmental impact, and improve quality of service for our customers. A three year pay deal will provide certainty for employees and ensure Royal Mail remains the industry leader on pay, terms and conditions.

Should members vote to accept it, it is expected to end the long-standing dispute that saw 115,000 postal workers take 18 days of strike action in the second half of 2022.

This situation has been arrived at only because of the sheer determination of every postal worker in this country who stood up for themselves, their jobs and their industry. We intend to put this deal to our members’ vote as soon as possible.

– Communication Workers Union spokesperson

Royal Mail CWU Agreement

  • Later start times: From March 2024, start times in delivery will be moved back to help Royal Mail respond to the market demand for more next day parcels, reduce their impact on the environment through the removal of 18 flights a day, improve quality of service and create greater capacity to grow. A programme of work on the pipeline will seek to limit changes to start and finish times in delivery by 60 minutes, with the option to move times up to 90 minutes if needed. The last letter delivery time will move to 4.30pm at this time.
  • Seasonal working patterns: From Autumn 2023 we will deploy new seasonal working patterns. Delivery postmen and women will work 39 hours per week in the peak Christmas season, 35 hours per week in the quieter summer season, and 37 hours for the remainder of the year to better reflect the seasonal variations in letter and parcel volumes.
  • Optimised single parcel network for larger parcels: Currently there is duplication across the Royal Mail and Parcelforce Worldwide networks, with both companies carrying the same format of parcels and visiting the same customers on the same day. The creation of an optimised single parcel network between Royal Mail and Parcelforce Worldwide will maximise synergies between the two brands and improve competitiveness in the delivery of larger parcels.
  • More efficient indoor mail preparation: Currently postmen and women spend up two hours a day re-sorting mail before their delivery round. Under this agreement Royal Mail will reduce the amount of time spent sorting by 20-35 minutes, so that more time can be spent delivering to our customers.
  • Sunday working: New employee contracts will include a requirement for regular Sunday working, enabling Royal Mail to grow its seven day parcels business and adapt to changing customer demands.
  • The agreement includes a commitment to no compulsory redundancies for the life of the agreement. There will be a joint review of this position in April 2025 to consider whether circumstances allow for the company to extend this commitment.
  • The agreement also covers changes to sick pay, attendance standards, ill health retirement, and agreement on revised contracts for new starters (introduced in 2022)

The agreement includes a 10% salary increase and a one-off lump sum of £500 for CWU grade employees in Royal Mail and Parcelforce. This is broken down as follows:

  • The previously consolidated 2% pay rise that applied from 1 April 2022;
  • A consolidated 6% pay rise applying from 1 April 2023;
  • A one-off non-consolidated lump sum payment of £500 (broadly equivalent to 2% of pay and pro-rated for part-time employees);
  • A consolidated 2% pay rise applying from 1 April 2024.

In addition to the pay increases, agreement has been reached on a profit share scheme over the life of this agreement. Subject to Royal Mail returning an adjusted operating profit in any financial year up to and including 2024/2025, 20% of adjusted operating profit will be distributed as a one-off payment to employees, paid after publication of the company’s audited accounts.

4 Responses

  1. This looks pretty similar to what was on offer last year. So the hell they put customers through with the strikes was for nothing. They’re working Sundays, have got an 8% rise over 3 years (2.66% pa) and are going to work later. All the rest is small change.

    This could have been sorted last year. Total BS from both Ward and Thompson. To hell with them and their lousy business. Hopefully customers will not forget and drift back this time. Never forget that these bozos do not give a ***t about you or your business. And they will do it again…. if you let them.

  2. I suspect after they blatantly lied in front of the House of Commons Committee that they decided the best thing to do was to get an agreement BEFORE they have to go back before them, that will be why they have finally come to this agreement with the Union rather than any compassion for the workers, just to save their own necks.

  3. They are starting later, working Sundays, and working different hours at different times of years and getting the pay rise that was offered last year, basically what Royal Mail said was needed over a year ago and the main reason for the strikes, seems those Royal Mail strikers lost income for no reason.

    I guess the threat of the company going in to administration changed the unions and strikers minds but this is possibly all going to be too late, Royal Mail is hated by many businesses that use it, most of the staff feel hard done by, not a good recipe for success.

  4. What a joke.Lost 1800 pounds during strikes for this.Bigger delivery roots,later start times and I guess the Union have gave up on the USO!Crap management and a crap union.Lions led by donkeys!

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