Royal Mail share price: CWU approves pay and pensions deal
iNVEZZ.com, Wednesday, February 5: Royal Mail plc (LON:RMG) has received the approval of the Communication Workers Union (CWU) for an agreement over pay, pensions and terms of employment.
Royal Mail’s share price was up 0.02 percent at 587.10p as of 15:06 UTC, valuing the recently privatised UK postal service operator at £5.87 billion.
In a statement, Royal Mail today said it is pleased that “CWU members have voted overwhelmingly in favour of a ground-breaking agreement on an agenda for growth, industrial stability, pay and protections”. Royal Mail has also approved the deal, which was agreed in principle in December.
The agreement sets out legally-binding terms covering industrial stability and protections, together with a three-year pay deal that will see the wages of 139,000 Royal Mail employees raised by nine percent over three years, including a three percent increase and a £200 bonus this year.
Royal Mail has agreed to maintain existing terms and conditions of employment, keep mostly full-time staff, make no additional franchising or outsourcing and continue with its restructuring programme without recourse to compulsory redundancies.
In return, workers have agreed that workplace disputes will be resolved at a much faster pace and without disruption, strict timescales will be applied to resolve any disputes and new mediation procedures will help reach agreement. The CWU said its members had backed the agreement by 94 percent. Turnout at the ballot was 57 percent. More than 80 percent of the 139,000 Royal Mail employees are in the CWU.
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Royal Mail said the agreement is a joint commitment to radically improve industrial relations and create a can-do culture in the interests of customers, employees and the company. Chief Executive
Moya Greene commented: “This is the first critical step to provide long term stability and certainty for Royal Mail, our employees and our customers. Now the hard work starts.”
The agreement also confirms a commitment by Royal Mail to increase employer contributions to the company’s pension plan. In October, CWU members threatened to go on strike unless their demands for a pay rise, better terms and conditions of employment and improved job protection were met. The stoppage was called off on October 30 after the two sides began to make progress in their negotiations (Royal Mail share price climbs as CWU calls off strike).
CWU deputy general secretary, Dave Ward, said that although Royal mail employees retain the right to strike, “a fresh approach to industrial relations will help create industrial stability”.
Royal Mail said that the implementation of the pay and pensions agreements doesn’t change the financial outlook for the company or its medium term objectives.
**As of 14:57 UTC buy Royal Mail shares at 587.50p**
**As of 14:57 UTC sell Royal Mail shares at 586.50p**