Tag: Royal Mail

The threat of the first national postal strike in a decade was lifted yesterday after agreement was reached between Royal Mail and the Communications Workers’ Union over the 2006 pay rise.

The union accepted the 2.9 per cent rise imposed by the management in May with additional cash and pledges about job security and pension rights.

In return, it lifted the threat of a strike ballot and made concessions on working practices that will help Royal Mail to compete in the increasingly tough postal services market.

However, there is still no agreement on the scheme to hand 20 per cent of Royal Mail shares to staff through an employee trust. Allan Leighton, group chairman, sees giving the staff a stake in the business as essential to win their support for restructuring and modernisation that will involve changes in working practices and the loss of jobs.

Union leaders have clinched a “groundbreaking” pay deal for 160,000 postal workers.

The agreement – worth an extra pounds 14 a week – lifts the threat of the first national post strike for a decade. It includes a 2.9 per cent wage rise imposed by Royal Mail in April. But workers will also receive an extra one per cent as a result of cost savings.

Crucially, bosses have extended this arrangement, which rewards staff with 40 per cent of any efficiencies, until April. That could put another pounds 120million – around six per cent – in pay packets.

The Royal Mail and union leaders hammered out a pay and productivity deal yesterday to avoid the first national postal strike for a decade.

The agreement was struck amid claims by the Communication Workers Union that it delivered “key aspects” of the organisation’s vision for postal workers and management arguments that it involved only “small elements of new money”.

After eight weeks of talks, the deal means the basic pay of workers will rise by 3.9 per cent. The Royal Mail said more than pounds 25m would be paid to postal workers in productivity payments this year on top of an above-inflation wage increase.

Royal Mail was dumped by the Government this week.
The firm lost out on a deal worth around half a million pounds to transport internal mail.

It was awarded to couriers DX Network Services.

Although initially for 12 months, the agreement could be extended for up to three years.

DX chief executive Paul Kehoe said: “We are delighted to have been awarded this contract for the Northern Ireland Civil Service.

“It is particularly pleasing to have won the business in the face of strong competition from other major industry players.”

The firm will transport post all over Northern Ireland to 138 Government office addresses.

A spokeswoman for the Royal Mail said: “The internal mail market has been competitive for a number of years.”

Royal Mail is using radio frequency identification (RFID) technology to monitor the flow of post, to identify problem areas and improve delivery services.

Last year more than 14 million letters were lost, stolen, damaged or tampered with, and more than seven per cent of mail was not delivered on time.Royal Mail is using radio frequency identification (RFID) technology to monitor the flow of post, to identify problem areas and improve delivery services.