The Royal Mail and CWU have secured a deal which means a pay rise for postal workers of more than 6.9% over three years.

The Royal Mail and Communication Workers Union (CWU) have finally settled on an agreement over pay and conditions for thousands of Royal Mail staff which resulted in weeks of strike action in 2009.

The deal, which was mediated by Roger Poole, ACAS and Brendan Barber of the TUC (Trade Union Congress), will bring a pay rise in excess of 6.9% over the next three years, a reduced working week to 39 hours, as well as a lump sum for each employee.

During a time of pay freezes and pay cuts, Royal Mail staff should finally be happy with their union’s work.

Dave Ward, CWU Deputy General Secretary, said: “It’s been a long time coming, but this deal delivers on the major issues which postal workers have fought for. There’s a balance of pay and operational changes which will help offset job losses and ensure our members are fairly rewarded for change.”

Royal Mail is delighted that it can continue with its £2 billion modernisation plan which includes the introduction of new automated machinery and delivery equipment, the subject at the heart of the CWU’s dispute.

Outgoing Royal Mail Chief Executive, Adam Crozier, commented: “This agreement is good for the business as it allows Royal Mail to get on with its modernisation, it’s a good and fair deal for our people, and it’s a good deal for our customers as it ensures stability over the next three years.”

By publicly announcing the deal, Royal Mail is seeking to reassure its customers that business is running as usual and that it will continue to win over those tentative of its stability.

“The Agreement is crucially important in allowing Royal Mail to compete successfully in the highly competitive communications market and to help counter the effect of the ongoing decline in traditional mail volumes,” said Mark Higson, Managing Director of Royal Mail Letters.

Businesses will be hoping that the deal will bring peace once and for all this summer, averting any more strike action by the workers.

The CWU said that the agreement is of course still subject to a ballot of CWU members for acceptance.