Landmark win for Royal Mail workers as staff and unions agree on 2.7% pay rise

Royal Mail workers are set to vote on a "landmark" deal to settle a two-year dispute over pay and working conditions.

Union members will vote on a 2.7% backdated increase for this year, a 1% increase next year and a shorter working week from 2021.

The Communication Workers Union called it an "excellent" deal which has been in debate since 2018.

It means the business will be able to prioritise investment in its fast-growing parcels division where it generates its highest income.

It will also allow Royal Mail to upgrade services for staff, including replacing handwritten signing-in sheets at sorting sites with swipe-and-scan technology.

Staff have worked around the clock despite the pandemic after non-essential stores were forced to close (PA)

Royal Mail's interim executive chairman Keith Williams said: "We have a window of opportunity to focus Royal Mail on what our customers want today - an ever-growing need for more parcels, whilst providing a sustainable letters service.

"We have been far too slow to adapt in the past and now need to deliver change much more quickly."

"This agreement marks the end of our two year dispute with Royal Mail Group and brings closure to one of the most adversarial periods of our history," CWU added.

The union said that the circumstances brought on by the Covid-19 pandemic have "massively advanced the change anticipated in our previous agreements in parcel growth".

Royal Mail's revenue in the eight months to November was £380million higher, thanks to growth in parcel demand.

On Monday, Royal Mail suspended mail services to mainland Europe due to border closures.

"This is a fast-moving situation and we are monitoring things on an hourly basis. We are working to keep as many international mail services running as possible given the current restrictions around air, road, ferry and train movements from the UK," a statement said.

It said items that are already in the system will be processed as normal and made ready for dispatch.

"These items will be held securely until we are able to get them to their relevant destinations.

"We're additionally experiencing delays to Canada and Turkey as air capacity is severely limited."