Royal Mail and the Communication Workers Union (CWU) have revealed the details of their agreement which has ended the lengthy dispute between the two parties.The agreement covers 139,000 staff across the UK and includes a 9% pay increase over three years, a lump sum of £200 to be paid before Christmas, as well as legal protections over workers’ terms and conditions.

The agreement also states that the operator must not outsource, sell or transfer any part of its business; will continue to provide an end-to-end service; and staff will remain predominantly full-time.

It also covers a strategy to grow its parcels business, retain its mail business and expand the universal service. Both parties will work together to develop business strategies.

The agreement will be put before the firm’s union members in January.

Royal Mail chief executive Moya Greene said: “I am delighted that we have reached an agreement in principle with the CWU.  This will provide long term stability and certainty for Royal Mail, our employees and our customers at this pivotal time. Working together we can create a strong foundation for the continued success of our business.”

CWU deputy general secretary Dave Ward said it was a “good deal for the company and customers as well as for employees”.