Talks between Royal Mail and the Communication Workers Union (CWU) have ended without an agreement being made.
Royal Mail said it was "deeply disappointed" after 11 months of talks ended without reaching an agreement.
The postal service and the CWU’s 115,000 postal members have been locked in an ongoing dispute over pay, jobs and conditions.
Workers were offered a 10% pay rise over the next three years as well as lump sum options of either £500 or £1,500 was rejected by the CWU.
A profit share arrangement was also offered.
But in the last few minutes, a Royal Mail spokesperson has confirmed talks were over, with no deal.
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A Royal Mail spokesperson said: "After 11 months of talks, including mediation by Sir Brendan Barber and Acas, we are deeply concerned that our talks with CWU have concluded without an agreement.
"We made substantial efforts to reach an agreement, including making a number of further improvements to our offer. These improvements were all based on feedback from the CWU, and we were hopeful that the CWU would put a deal to its members.
"We remain committed to reaching an agreement with the CWU. We have been clear throughout the dispute that not transforming our network and working practices is not an option in a business losing more than £1 million a day. In the best interests of the business, our customers, and the job security of our postmen and women, change cannot be delayed any further."
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The CWU confirmed that talks ended without agreement and they are currently determining their next steps.
A statement said: “Negotiations between the CWU and Royal Mail Group concluded last night without agreement.
“The company advised the union that the directors who have been leading negotiations are no longer available and that the Board will be meeting today to determine their next steps.
“There has been progress in several areas, and the union made it clear last night that we are willing to continue negotiations today and tomorrow to finalise an agreement. This offer has been reiterated to the company this morning.
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“We will be consulting with the union’s Postal Executive later today and considering all available options with regards to our next steps.
“The company have published selected aspects of their latest offer directly to employees, claiming that the main sticking point is new entrants’ terms and conditions. This is not true.
“Our members have seen these actions throughout this dispute from the employer and they will not be fazed."
The union has staged 18 days of strike action dating back to autumn 2022. Royal Mail claims action cost it in excess of £100m.