Communication Workers Union say agreement is subject to ballot
The Communication Workers Union (CWU) said the agreement would now be subject to a ballot by its 130,000 members.
It offers staff a 5.4 pct rise in pay and weekday overtime from 1 October, and an extra 1.5 pct pay hike from next April – conditional on reforms being delivered.
Royal Mail said the deal gave it a “fighting chance” of future success.
‘Settling the dispute’
The firm said the agreement – which brings a summer of costly industrial unrest closer to an end – would enable it to proceed with the modernisation of its operations.
We have been clear that to become competitive we needed flexibility to modernise
Royal Mail chief executive Adam Crozier
The CWU deliberated for a week before agreeing to back the deal and the BBC’s John Moylan said some of the language in the agreement might worry some workers.
The deal includes a one-off payment to workers of GBP 175 and a commitment to close the final salary pension scheme to new members in February and to existing members in April.
From April 2010, the normal retirement age for workers will be extended from 60 to 65 but existing staff will still be able to claim pensions benefits built up before that date at 60.
The CWU said the agreement “settles all areas of the dispute” and would now be subject to a ballot of union members.
Royal Mail said the agreement would allow it to enforce more flexible working patterns and use new technology more efficiently.
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