UK Royal Mail and CWU agree pay and major change

Royal Mail has welcomed the decision by the Communications Workers Union’s Executive Committee to recommend the company’s 14.5% pay offer linked to major changes. The company reached an agreement with the union’s negotiating team on 12 December.

“We’ve got real agreement and real commitment to change and to the substantial pay increases which reward those changes. That means we can all get on with improving the service we offer to our customers,” said Chief Executive Adam Crozier.

The eighteen month offer Royal Mail first made in the summer remains in place. The first 3% pay rise was paid on schedule in October. A further £26.28 increase in weekly pensionable pay is already being earned by more than 200 offices, with a total of 800 offices signed up and working towards the targets set in August, by local managers. These targets have not changed. The final 1.5% pay rise will be paid in April 2004.

The agreement confirms that the CWU is committed to, and will be involved in deploying, the changes Royal Mail needs to make.

People employed in Royal Mail’s transport and logistics operation will get their pay rises on the same timescale as other parts of the Group as the pace of change speeds up.

Royal Mail’s offer on London Weighting within the eighteen month deal agreed today remains unchanged – an annual increase of £300 to both inner and outer London allowances – but longer term commitments have now been successfully negotiated, for postmen and women. Mr Crozier said that the agreement would reassure customers in London and lift the threat of further strikes. “I know that the cost of living in London is a genuine issue for our London postmen and women. We can’t increase our current eighteen month offer – but we have committed to a further annual increase of £300 in the next pay round, once we have completed the changes, to take inner London allowances to £4,084 and outer London rates to £2,967 in April 2005.”

Royal Mail has confirmed that national pay bargaining will continue.

Mr Crozier said, “Our customers will welcome this news. In London, it gives us stability for at least the next two and a half years. And across the UK it means that everyone is focused on modernising the service.

“But the most important thing to me is to make sure everyone gets their hands on the money. Even before today almost half our delivery offices had signed up to the changes. This agreement will speed up the rest. There’s no reason why all postmen and women shouldn’t have the full 14.5% pay rise in their pockets by April next year. We’ve kept our promises.”

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