The DMA has hailed the deal between Royal Mail and the CWU as “great news for tens of thousands of companies” which should “inspire renewed confidence” among brand owners to use direct mail.
More than nine in 10 workers who voted in the CWU union’s ballot supported the “groundbreaking” agreement announced early in December.
The agreement, seen as a move towards German-style long-term industrial co-operation, secures a 9.06% increase in basic pay over three years. It also features five-year guarantees on job security, pensions and other conditions, and increases union involvement in the running of the business.
In return the CWU has signed up to measures designed to prevent local industrial action, which have afflicted Royal Mail for years, although has stopped short of signing a “no strike” agreement.
DMA executive director Chris Combemale said: “[The deal] reached between Royal Mail and CWU is great news for the tens of thousands of companies, their employees, charities and people that depend on the postal service every day.
“The rapid rise of ecommerce, and the dynamic integration of advertising and transactional mail with digital channels in customer communications has breathed new life into advertising mail and delivery of parcels. Investing in modernising the business, and a solid and stable workforce, is therefore essential for achieving long-term development and business growth for Royal Mail’s commercial customers
“Today’s announcement should inspire renewed confidence among brands to make advertising mail a key part of their one to one communications with millions of customers.”
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