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Employee relationsLatest NewsIndustrial action / strikes

Landmark pay agreement averts strike at Royal Mail

by dan thomas 27 Jul 2006
by dan thomas 27 Jul 2006

Strike action at the Royal Mail has been “narrowly avoided” after the organisation brokered a landmark agreement with the Communication Workers Union (CWU).

The dispute began when Royal Mail imposed a 2.9% pay rise in April, but the new agreement – secured after “lengthy and complicated” negotiations – overturns that, providing new money for salaries.

The agreement, which will now be voted on in a ballot of CWU members, includes:

– Consolidated pay of 2.9% which will now flow through to all allowances including London weighting, backdated to 3 July 2006

–  Achieving efficiency savings will add an extra 1% to basic pensionable pay and weekday overtime rates, backdated from 5 June 2006. In addition, 40% of all efficiency savings over this financial year will be put into basic pay meaning that postal workers may receive four pay rises this year

– Significant pension investment with no change to retirement age or staff contributions, dependent on government investment

– Job security, with no compulsory redundancies and no compulsory change from full- to part-time work

– Firm commitment to work with the union to grow the business in a competitive environment with new products and services rather than ‘slash and burn’ downsizing.

Billy Hayes, general secretary of the CWU, said: “This is a progressive and unprecedented agreement that will deliver significant benefits to postal workers.

“Royal Mail has responded to our clear vision of higher pensionable pay, job security, pension investment and a progressive attitude towards managing and growing the business.

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“Unlike management, we will now give postal workers their democratic right to have their say on this agreement in a ballot.”

 

Royal Mail
dan thomas

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