A deal between the parties could be agreed soon.

A deal between Royal Mail and the Communication Workers Union is inching closer, with both parties set to meet this week to conclude the agreement.

Last year, the postal service was hit by widespread walkouts up and down the country as staff protested plans to modernise the company and proposed changes to pay and working conditions.

Sky News business correspondent Joel Hills said that while there are still some areas where both sides are in disagreement, there is enough common ground to get things moving forward.

"It does look as if some sort of negotiated settlement is in the offing and certainly progress has been made since the tail end of last year, when there were five days of industrial action," he stated.

Sources recently told Tribune magazine that the likelihood is that Royal Mail will offer staff improved pay and benefits provided that union members agree to sacrifice some of their existing benefits.

Posted by Lucy Pritchard

Article Added: 03/03/2010 09:19:28