Royal Mail workers have finally voted to accept a new deal on pay, working arrangements and changes to the Universal Service Obligation, a breakthrough that has been welcomed by ministers as a chance to reform the struggling postal service.
The Communication Workers Union (CWU) confirmed that its members have backed a fresh agreement on working practices, with 65% voting in favour on a 32.9% turnout. A separate 4.5% pay offer was accepted by 72% of members, drawing a similar turnout of 32.3%.
The move means that the new “Optimised Delivery Model”, which has been trialled at 240 delivery offices, will be rolled out across the company’s 1,200 delivery offices, with implementation expected to be complete by December 2026.
First-class mail and parcels will continue to be delivered Monday to Saturday. Second-class and non-priority mail will see delivery scaled back, moving to an every-other-day schedule from Monday to Friday with no Saturday deliveries.
Many in the direct mail industry have backed the changes, but maintain that it is crucual the new model leads to more reliable deliveries.
The Government, which has faced growing pressure to address systemic failures in the UK’s postal network, welcomed the result as a pivotal moment for the company.
Business secretary Peter Kyle, who personally intervened to bring management and union leaders to the negotiating table, said the agreement marked a “new chapter” for the service.
He said: “We all recognise that postal services have let down loyal customers for too long, damaging confidence and the ability of businesses to plan for growth.
“Rebuilding trust in Royal Mail means change, which is why I brought together the company’s owners and union leaders to help them thrash out a deal that puts the future of this vital national service on a stronger footing.”
Kyle added: “No one questions the hard work of Britain’s posties. Now we all need to see a big improvement in the performance of the Royal Mail operation.”
The deal comes at a critical time for Royal Mail, which has been plagued by operational issues and industrial friction.
On Friday, the company revealed it had missed its annual regulatory delivery targets yet again, stoking public frustration and drawing the ire of the industry regulator.
According to Royal Mail’s latest quality of service report, just 75.7% of first-class mail arrived the next working day over the 12 months to the end of March, a slight decline from the 76.3% recorded the previous year. Under targets set by Ofcom, 90% of first-class mail is required to arrive the next day.
Second-class deliveries also fell short, with 90.2% arriving within three working days, down from 92.2% the prior year and well below Ofcom’s 95% statutory target.
Royal Mail has sought to reassure the public by pledging a £500m investment to modernise its network and improve service resilience, claiming that first-class delivery times have already begun to show signs of improvement in recent weeks.
However, the chronic underperformance is likely to trigger a severe regulatory backlash. An Ofcom spokeswoman expressed deep concern over the figures, stating that the regulator would “announce next steps shortly”.
It is understood Ofcom, which is itself under fire for failing to clamp down on the issue, is preparing to launch a full investigation into the performance failures in the coming days.
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