Under the terms of the agreement, basic pay and allowances for Royal Mail postmen  and women will increase by 6.9 percent over the three years from April 1st 2010.  Over the same period, the working week will be reduced by one hour, to 39 hours. 

Royal Mail says the agreement paves the way for a strong and successful future for the company and its people, and helps secure the Universal Service. It says it's extremely grateful to Roger Poole for his help and support in overseeing discussions with the CWU over the last three months. It has also thanked the union for the constructive nature of the talks.
  

The Agreement - Business Transformation 2010 and Beyond - means Royal Mail Letters can continue with its much needed £2 billion modernisation, including the  introduction of new automated machinery and delivery equipment and changes in the way people work. 
   

The three-year Agreement has the strong and unanimous backing of Royal Mail, the  CWU leadership and Roger Poole. The union plans to ballot its members on the Agreement during the next few weeks.

In addition to the main changes in basic remuneration, Royal Mail will pay lump sums totalling £1,000 per full-time individual - linked to the introduction and delivery of the planned changes – to further reward them for their part in the modernisation of the  business and to reflect the scale of the transformation Royal Mail needs to implement over the coming years. The payments will be made pro-rata to part-time employees.
  

Adam  Crozier,  Royal  Mail Group Chief Executive, said: “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. It  is  a  real  credit to all those involved – both in the company and the union  –  and  I’m  grateful  for all their hard work. I’m also grateful to Roger Poole for his help and support over the last few months.”

Mark Higson, Managing Director of Royal Mail Letters, said: “This three year  agreement is an important achievement for the Letters business and its people and one which breaks new ground in our relationship with the CWU."