The British Royal Mail proposed a pay rise of 6% as part of a three-year deal with the Communication Workers Union (CWU). This is a move to appease the largest union after threats of another strike ballot.
The company’s shares climbed 5% by 1525 GMT after the announcement. The new deal brings the total pay increase to over 16% from April 2018 to March 2023, which is the five-year period under its CWU initial agreement.
Strike action over Christmas have threated Royal Mail’s position and CWU is preparing for another strike ballot this month.
Royal Mail employs 143,000 people in the UK and this month faced a challenging year and may face a loss in its British business due to labour tensions and shrinking letter volumes.
It shall also introduce a second daily van delivery service across the country to respond to demand created by late-night online shopping.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.