Dispute Resolution Process, USO & Equalisation

No. 27/26

29th January 2026

Dear Colleague,

We have today received formal notification from Royal Mail that they have activated the

Dispute Resolution Process on Universal Service reform. Within their heads of

disagreement they are stating they want to deploy the Optimised Delivery Model 4 into 3

duties method change. This is following a meeting we had yesterday with EP.

The Dispute Resolution Process now results in one month of negotiations to see if an

agreement can be reached. After this month Royal Mail can give their intentions which could

result in executive action and the CWU can decide to ballot nationally or locally for industrial

action.

The CWU will not be supporting or agreeing to the Optimised Delivery Model as it has not

worked within most of the pilot units. However, we will enter negotiations to try and persuade

Royal Mail to adopt the heavy and light model which worked within a number of the pilot

sites during peak.

Royal Mail’s communication also states that the CWU’s proposal on equalisation is

unaffordable. The CWU position remains that EP agreed to equalise new entrants’ pay,

terms and conditions over an agreed career path, including a first step backdated to

September and we are insisting they honour this in full.

Royal Mail are communicating to all employees this lunch time and likewise the CWU will

communicate to our members. We will be giving a more detailed written update early next

week.

We will also be holding an online National Briefing with our Branches next week. Details to

follow.

Any enquiries should be referred to the DGSP Department.