Royal Mail reaches three-year pay deal with workers union

July 3 (Reuters) - International Distribution Services ROYMF.PK said on Thursday Royal Mail and the Communication Workers Union (CWU) have agreed on a three-year pay deal.

Royal Mail, whose iconic red post boxes with the Royal Crest dot the country, has struggled with labour strikes, competition and loss of market share.

CWU, the largest union of the UK's Royal Mail, has held multiple strikes in 2022 and 2023, with workers as well as businesses grappling with soaring inflation.

The CWU will shortly issue a ballot with a recommendation to accept and the agreement that includes a three-year basic pay increase made up of a 4.2% increase in 2025, an inflation-linked increase of at least 2% in 2026 and 2% in 2027, IDS said.

Subject to a positive ballot outcome, the increase will be backdated to 1 April 2025.

IDS agreed to a takeover by Czech billionaire Kretinsky in May 2024. The deal was cleared in December after Britain secured commitments from Kretinsky to protect the more than 500-year-old company and the future of thousands of workers and customers.

In late June, EP Group said Kretinsky will become the chairman of Royal Mail.

The CWU did not immediately respond to a Reuters request for comment.