Shares in Royal Mail owner jump 7 per cent after pay deal with union

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Ofcom could fine Royal Mail after it failed to deliver on postal targets across the whole of the UK this summer.
Ofcom could fine Royal Mail after it failed to deliver on postal targets across the whole of the UK this summer. (Credit: Getty)

Shares in Royal Mail’s parent company, International Distribution Services, closed up almost 7 per cent today after reaching an agreement with striking workers.

In a joint statement released on Monday, Royal Mail and the Communication Workers Union (CWU) announced they had reached an agreement “in principle.”

“The proposed agreement will now be considered by the executive of the union before being voted on by the union’s membership,” the statement added.

Royal Mail and the CWU said the content of the agreement would be made public once it is ratified by the union’s executive committee. That decision will take place later this week.

The agreement, if accepted by the union, would likely bring the dispute over pay and working conditions to an end after almost a year of talks and strikes. 

Royal Mail workers have walked out several times over the last year, hampering the company’s postal service, especially in the busy run up to Christmas.