Postal workers back peace deal

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The Communication Workers Union (CWU) said its members voted by 64% in favour of an agreement and will now receive a pay rise of 6.9% over two years.

Turnout in the ballot was also 64%. The union said it would now be at the heart of implementing changes to working practices in the Royal Mail, one of the issues at the centre of the bitter dispute.

Postal workers across the country were involved in a long-running campaign of industrial action since the summer, including a number of strikes, which crippled mail deliveries.

Dave Ward, the union's deputy general secretary, said: "Rather than accept market rate strategy for pay, this deal sets the benchmark for the whole of the postal industry to follow.

"The CWU has always recognised that change is needed in the Royal Mail and this agreement demonstrates that the union is leading the change agenda.

"The strong acceptance of this deal by postal workers shows that they also recognise that change is needed in the business."

A Royal Mail spokesman said: "We warmly welcome this strong 'yes' vote - it's a green light to allow the company to modernise to enable it to compete in a tough market where competition from rival operators and other forms of communication is rapidly intensifying.

"We will now be taking immediate steps to ensure postmen and women get the benefit of the pay deal in good time for Christmas."

Business Secretary John Hutton said: "This is a good news for consumers, the company and its employees. Staff have given the Royal Mail a mandate for modernisation that will make sure the company is flexible and competitive with a long-term future."