LONDON - The Communication Workers Union has accepted a pay deal with Royal Mail, in which postal workers pay will rise by 3.9% this year and provide the opportunity for further deals in the future.
The deal means that the threat of industrial action is withdrawn, and the direct marketing industry escapes costly disruptions.
As part of the deal, the current cap on door-drops will be lifted, therefore protecting jobs and improving pay.
Ray Ellis, acting deputy-general secretary of CWU, said: "We have secured a platform that ensures the union is fully involved in shaping the future of our members. This includes moving forward on our pay ambition of catching, matching and overtaking average basic pay.
"It also means that we are well positioned to deal with the change in the business in a way that ensures our ideas will be key to shaping our members' future the way they want it to work."
The agreement provides a 2.9% increase, guarantees a further 1% from efficiency savings and no compulsory redundancies. It also confirms the opportunity for further pay rises through efficiency savings.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.