Royal Mail PLC (LON:RMG) has highlighted a “continuing good trading” performance as the mail delivery firm confirmed that it has reached agreement in principle with the Communication Workers Union (CWU) on pensions, pay, a shorter working week, culture and operational changes.
In a statement, the FTSE 100 listed firm said the proposed agreement has been approved by the Royal Mail board having been considered by the executive of the union who recommend that CWU members vote in favour of it in an upcoming ballot.
READ: Royal Mail and CWU reach proposed agreement to end row over pension scheme changes
Moya Greene, Royal Mail’s chief executive officer, said: “This is an affordable and sustainable solution that enables us to continue to innovate and grow and to meet the intense competition with confidence.”
She added: “"Both Royal Mail and the CWU have shown that disputes can be resolved without recourse to damaging industrial action.”
In a brief trading update accompanying news of the union agreement, Royal Mail said: “Our continuing good trading performance means that we now expect to deliver adjusted Group operating profit before transformation costs for 2017-18 of at least £680mln”.
In early afternoon trading, Royal Mail shares were 1.8% higher at 477.7p.