The workers of the UK's mailing service, Royal Mail have secured a new agreement on the terms of their employment and pay hike in the coming years.

Under the agreement, Royal Mail workers will receive three-year pay increase worth 9 per cent and also have employment protections under a 'landmark' agreement. The deal between the Communication Workers Union and the mailing service, which was recently privatised, will cover a total of 130,000 employees and will avoid strikes.

Royal Mail agreement will be the first of its kind deal in the UK providing legal protections that benefit workers and the company as a whole. The deal will ensure that the workers will get a 3 per cent pay rise per year from next April and 2.8 per cent from April 2015 and will receive a £200 lump sum paid before this Christmas.

CWU deputy general secretary, Dave Ward, said, "The agreement breaks new ground in the UK by incorporating extensive legally binding protections for employees alongside a commitment to improve industrial stability. The legal protections for Royal Mail employees come hard on the heels of the privatisation of the company and are unprecedented in delivering the strongest protections for employees."

Moya Greene, chief executive of Royal Mail expressed delight over reaching an agreement with the workers.