The Royal Mail has announced that it has reached a settlement to end a long running dispute with its workers over pay and conditions.

Small and medium-sized business owners will welcome the announcement, as it vastly reduces the chances of any strike action by postal workers in the immediate future.

Many SMEs saw their businesses suffer towards the end of last year when the Communication Workers Union (CWU) organised several 48-hour strikes. The disruption caused led to an estimated backlog of at least 35 million items.

Staff will receive a 6.9% pay rise over three years and see their hours cut by just one hour a week. In return the CWU, which represents 145,000 workers, has agreed to the use of new machinery and working patterns as the Royal Mail tries to modernise.