UK workers at Royal Mail accept pay deal, ending long dispute

By Muvija M

LONDON (Reuters) -British postal workers have voted overwhelmingly in favour of a three-year pay deal with employer Royal Mail, ending a long dispute that has cost the company hundreds of millions of pounds and prompted the departure of its boss.

"This has been the most challenging period in both the history of the union and the company," Communication Workers Union (CWU) General Secretary Dave Ward said in a statement on Tuesday.

"Our members will know it doesn’t end with today’s result," he added, cautioning that the new CEO should be one that wants to "take the workforce with them" rather than continuing down its current path.

Simon Thompson, who took over as Royal Mail's CEO in early 2021, drew heavy criticism from the CWU over his handling of the pay dispute. The union has also blamed him for the company's financial problems.

He is due to remain with the company until the end of October while a search for his successor is underway.

More than 115,000 postal workers held a total of 18 days of nationwide strikes between September and December last year, demanding higher pay and better working conditions as rising inflation eroded earnings.

Royal Mail's parent, International Distributions Services Plc (IDS), said the agreement provided Royal Mail a platform for the next phase of "stabilising the business whilst continuing to drive efficiencies and change".

The holding company had in October threatened further layoffs due to the disruption, which has cost the company more than 200 million pounds. In Tuesday's statement it said the agreement included a commitment to no compulsory redundancies for the duration of the deal.

Some 76% voted in favour of the pay agreement, which included a 10% salary increase and a one-off lump sum of 500 pounds ($631), in a ballot that recorded a 67% turnout, the CWU said.

"We are now working with the CWU to deliver the transformation activity in the agreement and implement the changes agreed," IDS said.

(Reporting by Muvija MEditing by William James and Mark Potter)