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The UK’s Communication Workers Union says it has reached a groundbreaking agreement in principle with EP Group over its takeover of Royal Mail.

Communication Workers Union general secretary Dave Ward says:

“At the same time as this agreement is announced, we are pleased to have reached a negotiators settlement with EP Group covering crucial areas such as job security, the governance of the company, a meaningful stake in the business for employees, restoring quality of service, legally binding commitments and improving the terms and conditions of our members.

“This agreement provides the foundation to rebuild Royal Mail.

“The other major factor here is whilst many will fear Royal Mail falling into the hands of a foreign equity investor, the truth is that the status quo is what will kill off postal services in the UK.

“The Royal Mail Group Board have been running the company into the ground over a sustained period and in the process have completely alienated their own workforce. It is time for a fresh start and a complete re-set of employee and industrial relations.

The IDS Board welcomes the Government’s endorsement and legal backing for the comprehensive package of undertakings and commitments we negotiated. These provide our customers, colleagues, unions, regulators and broader stakeholders with safeguards for the provision of the Universal Service Obligation, the ongoing financial stability of Royal Mail, the maintenance of colleague benefits, and Royal Mail’s broader role in the United Kingdom.

“We welcome the Government’s commitment today to secure a stable future for Royal Mail. This will not come from a change in ownership alone but must also be backed by urgent reform of the Universal Service and the continued transformation of this great British business.”