The deal will see staff receive a pay rise of 6.9 per cent over three years.

Fears of a postal strike have been dispelled after Royal Mail and the Communications Workers Union (CWU) last night (March 8th) reached an agreement over pay and plans to modernise the postal service.

The deal will see staff receive a pay rise of 6.9 per cent over three years while full-time workers will be given a lump sum payment of £400 on ratification of the agreement and a further £1,000 when the changes are implemented.

In return, employees have agreed to Royal Mail's plans to modernise the postal service which include the introduction of more machinery and shorter working patterns.

Mark Higson, managing director of Royal Mail Letters, said the deal is mutually beneficial.

"This agreement is crucial in allowing Royal Mail to compete successfully in the highly competitive communications market. It enables the business to rapidly complete the introduction of the latest-generation sorting technology and new delivery methods to improve efficiency," he added.

Last year, more than 35 million items of mail were delayed by postal strikes which took place up and down the country.

Posted by Mark Moore

Article Added: 09/03/2010 09:30:13