Royal Mail and CWU extend deadline for pay deal

LONDON (Reuters) - The deadline for an agreement between Britain's newly privatised Royal Mail postal service and union members on pay and working conditions has been extended to December 3.

The Communication Workers Union (CWU), which represents most Royal Mail staff, said on Tuesday there had been "significant progress" in reaching an agreement over an improved pay offer, better working conditions and a separate pension agreement.

"We are confident that negotiations will conclude during this extended period," said CWU deputy general secretary Dave Ward.

Last month Royal Mail staff called off a planned strike after both parties committed to reaching an agreement.

On Tuesday the CWU said the legal validity of the current industrial action ballot had now been extended to December 3, the last date that notice of strike action can be served.

The union, which in July rejected an 8.6 percent pay increase over three years and a lump sum payment of 300 pounds, said it was considering an improved pay offer from Royal Mail.

The CWU added that progress had been made on issues including pensions and legal protections but that it still had areas to resolve around delivery workloads.

CWU postal executives are due to meet again on December 2 to consider its position.

(Reporting by Neil Maidment; Editing by Rhys Jones)