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Royal Mail strikes three-year wage deal with union

International Distribution Services announced on Thursday that Royal Mail and Communication Workers Union (CWU), had reached an agreement on a pay deal for three years.

Royal Mail has been struggling with strikes by workers, competition, and a loss of market share.

CWU (the largest union in the UK Royal Mail) has been on strike multiple times between 2022 and 2023. Both workers and businesses are struggling with the rising inflation.

IDS reported that the CWU would issue a ballot in which it will recommend accepting and approving an agreement containing a basic pay increase over a period of three years, consisting of a 4.2% rise in 2025 and a 2% raise in 2026, linked to inflation.

If the ballot results in a yes, then the increase is retroactively applied to 1 April 2025.

IDS has agreed to be taken over by Kretinsky, a Czech billionaire in May 2024. The deal was finalized in December, after Britain obtained commitments from Kretinsky that he would protect the company's more than 500 years of history and the futures of thousands of employees and customers.

EP Group announced that Kretinsky would become chairman of Royal Mail in late June.

The CWU didn't immediately respond to a comment request. (Reporting by Chandini Monnappa in Bengaluru; Editing by Shreya Biswas)

(source: Reuters)