Union members back three-year Royal Mail pay deal
Royal Mail’s non-managerial work force have voted to approve a “ground-breaking” new union contract. Although only 57% of the 115,000 Communication Workers Union members within Royal Mail voted on the three-year pay deal, more than 94% of those voting backed the contract.
The ballot which closed yesterday sought approval among the membership for a contract based on a 9.06% pay rise over three years.
The deal running through to 2016 offers a 3% pay rise each of the first two years, followed by a 2.8% increase in the third. New incentive arrangements to encourage efficiency will also be introduced by April 2014, the union said.
Along with increased pay, the contract also sees newly-privatised Royal Mail pledging not to outsource, sell or transfer any part of its business, and providing assurance not to use compulsory redundancy or make any employee self-employed.
The CWU said Royal Mail’s employment model will remain “predominantly full time” under the contract.
Dave Ward, the CWU deputy general secretary said his union was pleased that members had “overwhelmingly” accepted the deal, despite the relatively low turnout, which was lower than during ballots to strike or boycott downstream mail held last year.
“We have achieved extensive and unprecedented legally binding protections for employees that not only strengthen their job security but also shape the values and principles that the Royal Mail Group will operate under as a private organisation,” he said.
“This agreement commits Royal Mail to an agenda for growth, rather than managing decline. There will be no tolerance for a race to the bottom on services and jobs and we believe this agreement will set the standard for pay, employment rights and services for the rest of the postal industry.”
Dynamic of privatisation
“This is the first critical step to provide long term stability and certainty for Royal Mail”
Ward said the pay deal his negotiating team secured back in December was “at the very top of the range” for the public or private sector, claiming that the commitments on job protections and a renewal of the mediation process in contract disputes “changes the dynamic of privatisation”.
The contract with CWU avoids the prospect of strike action by seeking a process of mediation in future. The union had been threatening all-out stoppages in the run-up to Christmas before Royal Mail increased its pay offer.
Ward insisted the deal still leaves the door open to the threat of strike action if mediation does not resolve disagreement with management.
He said: “Although we retain the right to strike, a fresh approach to industrial relations will help create industrial stability and new governance arrangements will increase CWU influence in the day to day running of the business.”
Royal Mail said its new labour contract covers 139,000 employees in total, including those in core operations, logistics, engineering, fleet maintenance, Royal Mail International and, with some “minor variations”, other employees including those in Parcelforce Worldwide.
The company noted that along with the pay deal, CWU members had backed its pensions agreement.
Moya Greene, the Royal Mail chief executive, said she was pleased union members had approved the contract.
“This is the first critical step to provide long term stability and certainty for Royal Mail, our employees and our customers. Now the hard work starts,” she said.
Royal Mail said the union contract will support its continuing modernisation and transformation, as it adapts its network to a growing number of parcels.
“Renewed confidence”
The union agreement received a warm welcome from key Royal Mail customer groups yesterday.
The Direct Marketing Association, which represents the advertising industry that accounts for about £1bn of Royal Mail’s revenues, said the deal was “great news” for companies, their employees, charities and consumers who rely on the postal service.
Chris Combermale, the DMA executive director, said the agreement with the CWU should inspire “renewed confidence” among brands to make advertising mail a key part of the communications to millions of customers.
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“The rapid rise of ecommerce, and the dynamic integration of advertising and transactional mail with digital channels in customer communications has breathed new life into advertising mail and delivery of parcels,” he said.
“Investing in modernising the business, and a solid and stable workforce, is therefore essential for achieving long-term development and business growth for Royal Mail’s commercial customers.
