Royal Mail to End Saturday Second Class Post by December After Union Deal
Royal Mail has reached a landmark agreement with the Communications Workers Union (CWU) that will see second class letter deliveries on Saturdays scrapped across the United Kingdom by December this year. The deal brings to a close a lengthy dispute over the overhaul of second class postal services, which will now be delivered every other weekday instead of daily.
Nationwide Rollout of Universal Service Reforms
The agreement paves the way for Royal Mail to extend its Universal Service reforms to an additional 240 delivery offices as part of a wider trial, before completing the rollout across the full network of 1,200 UK offices by the end of the year. This follows regulator Ofcom giving the green light to Royal Mail's plans last year, with initial pilot changes launched across 35 delivery offices starting from July 28.
Alistair Cochrane, chief executive of Royal Mail, stated: "This agreement with the CWU paves the way for Universal Service reform rollout and represents a significant investment in our people. Moving ahead with reform will make a real difference to Royal Mail's quality of service, supporting the delivery of a reliable, efficient and financially sustainable postal service for our customers across the UK."
Pay Rises and Improved Working Conditions
The comprehensive deal includes significant benefits for postal workers:
- A 4.75% pay rise for workers who joined on or after December 1, 2022
- A 3% salary increase for those on legacy contracts
- New starters will receive contracts based on standard 37-hour working weeks
- Approximately 6,000 part-time postal workers will have the opportunity to increase their average weekly hours if required as part of the second class post reforms
CWU members will now be consulted on the agreement before final implementation.
Background to the Postal Service Dispute
The agreement comes after intensive talks between Royal Mail and the CWU that began in early February to resolve the longstanding dispute. Under the Universal Service Obligation, Royal Mail must maintain Monday to Saturday deliveries for first class post while ensuring second class letters arrive within three working days.
Royal Mail has argued that changes to second class deliveries are crucial to maintaining letter delivery services and ensuring future sustainability. This comes as the postal service has continued to miss delivery targets set by Ofcom, amid growing concerns from MPs about practices within the service and worries that parcels are being prioritised over letters.
Parliamentary Scrutiny and Service Concerns
During a cross-party Commons committee session last month, the CWU told MPs that the postal service had become "chaotic," with Royal Mail workers allegedly being instructed to leave doctors' and hospital letters on racks to prioritise parcels. Royal Mail's owner Daniel Kretinsky, who also gave evidence to the committee, insisted there was no "management decision" to prioritise parcels over letters and argued that the service cannot be properly fixed until plans for reform of the Universal Service Obligation are implemented.
The CWU addressed its members in a statement regarding the agreement: "It is now imperative that all branches, representatives and members have the opportunity and time to fully consider this agreement properly, not only on the basis of how we have moved the company significantly on all the key issues, but also in its wider context around why USO reform is necessary and why we must shift our focus to changing the role of Ofcom and create a level playing field with our competitors."
The union added: "Delivering change will always be difficult but we are clearly in a stronger position to support our members under the terms of this agreement."
