Royal Mail has proposed a new three year agreement with the Communication Workers Union (CWU), following a ballot for industrial action last month.

The operator will propose an 8.6% pay rise for around 125,000 staff over three years, as well as a lump-sum payment of £300 in December 2013.

Royal Mail is expected to come to an agreement with the CWU this week, the result of which will not be affected by its planned privatisation.

Chief executive Moya Greene said: “Co-operation is central to the future success of the company. This offer represents Royal Mail’s commitment to a long-term engagement strategy with the CWU and with our people.

“We are asking the CWU and our people to accept this new agreement. There will be further discussions this week with the CWU about the proposed agreement.”

Last month the results of a CWU ballot of 112,000 Royal Mail staff revealed that 96% opposed the planned privatisation of the firm.

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