Royal Mail Group (LON:RMG) staff have backed a deal on pay and pensions, the privatised postal operator has said. The move came after the company reached an agreement with the Communication Workers Union (CWU) earlier this year, following months of negotiations after the company unveiled plans to replace its defined benefit pension scheme with a cheaper alternative.
Royal Mail’s share price has advanced in London in today’s session, having added 0.71 percent to 539.60p as of 10:25 BST. The group’s shares have added more than 28 percent to their value over the past year, helping the company stage a return to the benchmark FTSE 100 index, following the Footsie’s latest quarterly reshuffle.
Staff back pay and pension deal
The CWU disclosed in a statement yesterday that postal workers had ‘voted overwhelmingly’ to accept the union’s deal reached in talks with Royal Mail covering pay, pensions and working conditions. Members of the CWU voted by a margin of nine to one in favour of the agreement.
“The Agreement also extends the legally binding protections which gives postal workers confidence that the Royal Mail Group will not be broken up and that protecting the six-day Universal Service Obligation (USO) remains a priority,” Terry Pullinger, Deputy General Secretary (Postal) of the CWU, commented in the statement.
Royal Mail issued a short statement, noting that it was ‘pleased’ by the vote outcome.
Analysts on postal operator
The 16 analysts offering 12-month price targets for Royal Mail for the Financial Times have a median target of 495.00p on the shares, with a high estimate of 605.00p and a low estimate of 300.00p. As of March 23, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.