Postal workers at Royal Mail have voted in favour of a deal that will increase their pay by 10 per cent over the next three years, in a move that promises to ease the turmoil at International Distributions Services (IDS), the listed parent company.
According to an announcement by the Communication Workers Union (CWU), 76 per cent of balloted members backed the agreement. Turnout was 67 per cent, which the CWU described as “the biggest turnout we have ever had in a membership consultation ballot”.
Dave Ward, general secretary of the CWU, said the vote followed the “most difficult period in history of the union and indeed the company”.
“We hope by you endorsing this agreement we can start to have a different conversation with the company going forward,” Ward told union members. IDS said the the agreement provided "a platform for the next phase of stabilising the business whilst continuing to drive efficiencies and change".
The company must now implement a 10 per cent salary increase and a one-off lump sum of £500 for postal grade employees in Royal Mail and Parcelforce. Staff will also start work later, shift to seasonal working patterns to reflect higher volumes around Christmas and receive 20 per cent of Royal Mail’s operating profits over the next two years, if any profits are made.
Royal Mail reported an operating loss of over £1bn for the year to 26 March 2023. Revenue fell by 13 per cent in the period, which included 18 days of strike action, while operating costs remained stubbornly high.
IDS is expected to announce a new chief executive in the coming days, the union said, following the resignation of Simon Thompson in May.
The company will hold its AGM on 20 July. Shareholders will vote on a new remuneration policy at the meeting, which swaps out earnings as a driver of bonuses: "Whilst earnings are a critical measure of success, the [remuneration] committee felt there may be other measures that better represent successful performance during different stages of growth or turnaround of our businesses", the company said in its annual report.
