Unite and Royal Mail have agreed in principle pay awards for junior and middle managers in Royal Mail Group. Parcelforce Worldwide managers are excluded from this pay deal. The pay offer is subject to a ballot by Unite members, though the union has said that it will recommend that its members accept the pay offer.

The main terms of the pay offer are:

1.6% increase to basic pay, flowing through to allowances, regional pay and overtime from September 2015;

A further 1.3% applied on the same basis from September 2016;

HRS and broadband grade managers will have their pay awards applied using the standard practice for those populations.

If the August 2016 RPI figure is outside the range of 1.05% to 1.55%, either party may seek further discussions for the September 2016 pay award.

The next pay review will begin in September, 2017.

Unite has suspended its work to rule, overtime ban and other potential industrial action with immediate effect, following some months where industrial action was taken to help force Royal Mail to the negotiating table. The union will now be putting the proposed agreement to its members in a ballot as soon as arrangements can be made.

This dispute has been going on for some months, after the union rejected the original pay offer and balloted its members for action.