The agreement includes:

• First-class letters will continue to be delivered Monday to Saturday, and there will be no second-class letter deliveries on Saturdays.
  
  

• Second class, Down Stream Access (DSA), and all other non-priority letters will be delivered every other day Monday to Friday.
  
  

• New headline targets for First-class and Second-class Universal Service Obligation (USO) mail with new ‘tail of mail’ targets from April 2026.
  
  

• Requirement for collections on Second class USO letters to be Monday to Friday, noting Royal Mail intends to collect mail Monday to Saturday.
  
  

• Reforms will be extended to another 240 delivery offices as part of a wider trial, before being completed across the full 1,200 network by December.
  
  

• Workers who joined on or after 1 December 2022, will receive a 4.75% pay rise while those on legacy contracts will receive a 3% rise.
  
  

• New starters’ contracts will be based on standard 37-hour working weeks, with an allowance for around 6,000 part-time postal workers to increase average weekly hours if needed.
  
  
• New DSA D+3 service to be regulated in the same way Ofcom regulates existing access services.

You can read the agreement in  full here.

This agreement marks the end of a dispute between Royal Mail and the CWU over proposed reforms to the Universal Service Obligation. 

As reported by the East London Advertiser, Alistair Cochrane, Chief Executive of Royal Mail commented: “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.” 

Royal Mail’s buyout was cleared by shareholders in April last year, after new owners EP Group gave the Government legal undertakings that they would maintain the “one price goes anywhere” Universal Service Obligation (USO). 

Royal Mail’s regulator, Ofcom, subsequently approved Royal Mail’s plans to scale back Second-class letter deliveries. The changes were piloted in 35 delivery offices, but have not been expanded past that due to disagreement with the union. 

Furore over Royal Mail’s performance reached a peak last month, when they were summoned to give evidence to the Business and Trade Committee, alongside their regulator (Ofcom) and their union (the CWU). The Chair of the Select Committee, the Rt Hon Liam Byrne MP, has confirmed that the Committee will continue to scrutinise the need for Royal Mail to significantly improve quality of service going forward. 

In a statement to members, the CWU  said: “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 an create a level playing field with our competitors. Delivering change will always be difficult but we are clearly in a stronger position to support our members under the terms of this agreement”. 

The PPA has contacted Royal Mail and the CWU for more information and will provide further updates as soon as they are available. In the meantime, if you have any questions, please contact us at charlotte.jeffreys@ppa.co.uk