Royal Mail pay boost and £300 bonus rejected by trade unions

Michael Bow
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ROYAL Mail bosses will meet with trade union reps today to thrash out a new pay deal for 125,000 workers after officials rejected an initial 8.6 per cent three-year increase.

The Royal Mail offer, which would raise wages by 2.8 per cent in the first year and then three per cent and 2.8 per cent in the following two years, was rejected by the Communication Workers Union (CWU).

The offer also included a £300 Christmas bonus this year and the potential for bonuses in future.

The CWU told members it had said no to the offer because it wanted a simpler, higher increase to wages and other protections if the company changes ownership.

Deputy general secretary Dave Ward said: “Postal workers want more security; what’s on offer is less.”

The Royal Mail said that unless there was collective agreement with the CWU, the pay increase would not be introduced. “This is a good deal – good for Royal Mail and good for our people,” Royal Mail chief executive Moya Greene said.

The pay negotiations have been heightened by a running battle between the Royal Mail and unions over plans to float the business on the London stock market and changes to its pension scheme.

Last week Royal Mail was in court forcing the CWU to promise not to undertake industrial action to boycott so-called access mail, which the group delivers for third party companies.

Conflict is also rumbling on over the Royal Mail Pension Plan, which the company yesterday said would be kept open to current members.