Royal Mail ends long-running dispute with union

The Royal Mail has today confirmed an outline pay deal with the Communication Workers Union (CWU) which will see a 6.9% increase in pay up to 2012 and put an end to what has been one of the longest and most damaging union conflicts in the company's history. The company appears to have made various concessions regarding shorter working hours, more job security and indeed postal workers will be entitled to a £2,500 lump sum payment and weekly pay supplements.

The dispute has centred upon Royal Mail's insistence that new technology is brought into the company and the union looking to secure as many jobs as possible for the future. Only a few weeks ago it seemed that the two parties were at different ends of the spectrum and today's announcement of an outline agreement, which needs to be ratified by the workforce, has taken many by surprise.

However, today's deal will allow both parties to concentrate on what is best for the Royal Mail and reduce the damage to the company's reputation and ongoing loss of market share. While some people believe this may not be the end of the conflict between the management and the union there is no doubt that a short-term truce has at least been called.