Royal Mail averts Christmas strike risk with union deal

LONDON (Reuters) - Britain's newly privatised Royal Mail said on Wednesday it reached an agreement in principle with union members on pay and pensions, removing the risk of a strike taking place during the company's busy Christmas period.

The Communication Workers Union (CWU), which represents Royal Mail staff, had at one point threatened to strike after talks faltered.

"The CWU has confirmed that there will be no disruption through industrial action during the ratification process of the proposed agreement, including the whole of the Christmas trading period," Royal Mail said in a statement.

The threat of industrial action formed part of the backdrop to Britain's high-profile privatisation of Royal Mail, much opposed by the CWU but eventually pushed through in October.

Details of the proposed agreement, subject to approval by a vote by CWU members and the board of the company, will be released following ratification by the union's executive committee.

Shares in Royal Mail traded up 1.2 percent at 1043 GMT on Wednesday.

(Reporting by Sarah Young, Editing by Paul Sandle)