Post union welcomes 'concessions'

The postal union has hailed Thursday's agreement with Royal Mail - in which it claims "significant concessions" were made by the company.

The Communication Workers Union says this was down to the strength of the union's national strike ballot.

Royal Mail said the agreement on the key issues was the same as the one discussed last month with the union.

Both sides agreed to improve relations and establish "a radically different culture".

A new and improved reward and benefits package was also part of the deal.

Further talks will take place in December with the aim of finalising a deal by the end of 2010.

The dispute centres around the modernisation of the Royal Mail. The CWU agrees that job cuts are necessary - but disagrees on how many.

The two sides also disagree over changes to pay and working conditions for Royal Mail staff that remain in their jobs.

The company wants to introduce the changes to counter the fall in business. Royal Mail says the number of letters and parcels which it delivers is falling by 10% each year, losing it £170m a year.

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