The Royal Mail has revealed that talks with union bosses have ended in stalemate, raising the prospect of further postal strikes.
The two sides have been negotiating for 11 months over pay, jobs and conditions for the 112,000-strong workforce, which led to 18 days of strikes in 2022 and 2023.
A spokesman for Royal Mail said: “After 11 months of talks, including mediation by Sir Brendan Barber and Acas, we are deeply concerned that our talks with CWU have concluded without an agreement.”
“We made substantial efforts to reach an agreement, including making a number of further improvements to our offer.”
“These improvements were all based on feedback from the CWU, and we were hopeful that the CWU would put a deal to its members.”
It stressed it remained committed to striking a deal.
For its part the CWU said there had been progress in several areas, and it was willing to continue talks, but had been advised that the directors leading the negotiations for Royal Mail were no longer available.
An important update for Royal Mail Group members. pic.twitter.com/j1uAmTpq6k
— The CWU (@CWUnews) April 5, 2023
It said it would consider all options with regards to its next steps.
Shares in International Distributions Services PLC (LSE:IDS), which owns Royal Mail fell 1.5% to 217.10p.
Royal Mail said it made two alternative pay offers, the first being what it called a "10% three-year pay deal", which includes a 2% pay rise from last April, plus another 6% this month plus a lump sum of £500, and another 2% from April 2024.
Option B differed in the increase this month would be 2%, a lump sum of £1,500, and then a 6% increase from April 2024.
The company said all allowances would remain for existing employees, with a "significant profit share" proposed for employees when the company returns to profitability, with proposal amended so that work start times in delivery offices would be moved back 60-90 minutes later instead of up to three hours, with a last letter delivery time of 4.30pm, all starting from March 2024, "to give everyone time to adjust".
A CWU spokesperson said the union "made it clear last night that we are willing to continue negotiations today and tomorrow to finalise an agreement. This offer has been reiterated to the company this morning.
"We will be consulting with the union’s postal executive later today and considering all available options with regards to our next steps."