The Royal Mail announced a key pay deal with more than 12,000 of its managers yesterday but acknowledged that there was still no sign of an agreement with postal workers over a strike that has crippled deliveries across the United Kingdom.

It said that managers had agreed to a package of pay, modernisation and pension reforms that will see them receive a 2.5 per cent wage rise back-dated to April.

The retirement age is to be increased by five years to 65 but the final-salary pension scheme will remain in place for existing employees.

The move eliminates the threat of a second front to a strike that could leave the country without a postal service until the middle of next week.

Thousands of postal workers began a 48-hour walkout at noon on Thursday and a second two-day stoppage is scheduled to begin on Monday.

The postal workers are represented by the Communication Workers Union (CWU), which is furious over planned reforms to working practices for its members.

It claims that 40,000 postal staff could lose their jobs as a result of changes to working patterns.

A Royal Mail spokesman said: “We expect there to be severe disruption to the postal service.” Representatives from Royal Mail and the CWU were expected to meet yesterday for further peace talks. The Royal Mail managers are represented by the Unite CMA union.

Royal Mail said that the deal agreed with Unite CMA was “excellent”. A spokesman added: “It provides a 2.5 per cent basic pay rise this year – which does not exceed what the company can afford – while recognising the positive role that managers will play in the modernisation of Royal Mail, essential to enable the company to compete in a market open to full competition.”

Paul Reuter, a national officer of the union, said: “Unite has secured a deal with Royal Mail, which we believe will protect £1.5 billion-worth of pension benefits for Royal Mail staff.

“We now have a pensions package that we can take to our members.”

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