Royal Mail, CWU Agree to End Saturday Second-Class Deliveries
Analysis based on 9 articles · First reported Apr 16, 2026 · Last updated Apr 16, 2026
The agreement between Royal Mail and the Communication Workers Union (CWU) is expected to positively impact Royal Mail's financial stability and service quality, potentially leading to an increase in its stock price. The changes to delivery services will affect customers across the United Kingdom, but are seen as necessary for the long-term sustainability of the postal service.
Royal Mail has reached an agreement with the Communication Workers Union (CWU) to implement Universal Service reforms, which include scrapping Saturday second-class letter deliveries across the United Kingdom by December. This deal resolves a lengthy dispute and will see the reforms rolled out to 240 delivery offices initially, then across the full 1,200 UK network. The agreement also includes a 4.75% pay rise for staff who joined after December 1, 2022, a 3% hike for those on legacy contracts, and improved terms for new starters, including standard 37-hour working weeks. Additionally, around 6,000 part-time postal workers will have the option to increase their average weekly hours. Royal Mail's chief executive, Alistair Cochrane, stated that this agreement is a significant investment in people and will improve service quality and financial sustainability. Regulator United Kingdom===Ofcom had previously approved these changes and agreed to relax Royal Mail's quality-of-service targets. Daniel Křetínský, Royal Mail's owner, had emphasized the necessity of these reforms for the service's viability.
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