Isle of Man Post Office has reached an agreement with the Communication Workers Union (CWU) ending months of lengthy and detailed discussions over pay. The agreement was reached with the National Executive of the Union and ratified by the local branch membership. The agreement is a complex settlement which provides for a headline increase of 3.5% in basic pay. This is funded through the reallocation from ancillary payments from within the existing payroll costs and changes to working practices which provides the business with improved operational productivity. The agreement complies fully with the Government’s freeze on public sector pay budgets which was clearly set out by the Treasury Minister in the budget speech in 2010 and 2011. The agreement covers the financial years of 2010/11 and 2011/12 and is effective from 1st April 2011. The consequences of the efficiency improvements means that the overall workforce will reduce and this will be dealt with through natural wastage and voluntary redundancy. Due to the continuing decline in mail volumes, a process for voluntary redundancy has also been agreed should it be required in the future. Mike Kelly, Chief Executive states “I am pleased that this dispute has now been settled within the constraints of the Public Sector pay freeze and removes the uncertainty faced by our customers and staff. We continue to have a strong relationship with the CWU to develop the new products and services required for a modern postal service.” -Ends-