Postmen are urged to accept pay deal

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Royal Mail has offered its staff a 5.4 per cent rise and a one-off payment of £175.

There will be another pay rise of 1.5 per cent and a payment of £400 once the agreed reforms are in place.

The Communication Workers Union will ask its 130,000 members at the Royal Mail to back the deal in a ballot.

But there is doubt that postmen will rubber stamp the offer. Many are angry at plans to change their working hours, with most daily deliveries being shifted to the afternoon.

Workers, who walked out after rejecting an offer of 2.5 per cent, fear modernisation will cost 40,000 jobs.

The dispute is thought to have cost Royal Mail millions of pounds.

Ministers welcomed the union's recommendation. Business Secretary John Hutton said: "This will ensure the Royal Mail can continue to modernise."

Nick Dines, of the British Chambers of Commerce, added: "This is good news. Small businesses have been held at ransom by the CWU."