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Last Updated: Tuesday, 27 November 2007, 16:38 GMT
Postal workers in Royal Mail deal
Postal workers on strike
Postal workers staged their first 24-hour strike in June
Postal workers have reached a deal with Royal Mail on pay and conditions, ending a long-running dispute.

The Communication Workers' Union said its members voted by 64% in favour of an agreement, and will now receive a pay rise of 6.9% over two years.

Postal workers staged strikes across the country over the summer, hurting mail deliveries.

Royal Mail said it could not afford to increase workers' pay, amid increased competition from more efficient rivals.

Tough competition

This latest pay deal sets a benchmark for the postal industry, the Communication Workers' Union (CWU) said.

"The CWU has always recognised that change is needed in the Royal Mail and this agreement demonstrates that the union is leading the change agenda," Dave Ward, the CWU's secretary general said.

Since Royal Mail lost its monopoly status on post deliveries at the start of 2006, 17 operators have entered the UK mail market.

This has created fierce competition for the former monopoly - particularly in the more profitable business post sector.

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