Post Office management says it believes its latest revised offer - which has been rejected by postal union members - is ’fair and realistic’.

Members of the Communication Workers’ Union are preparing a second walk-out next week in a dispute over changes to pay and terms and conditions.

The three-day strike is scheduled to take place on February 14, 15 and 16. This follows a two-day strike staged by the postal union before Christmas.

A revised offer by the Post Office management was unanimously rejected by postal members of the CWU at a meeting in the Sefton Hotel's Garden Room on Wednesday night.

The move followed two days of talks between the two sides, assisted by the Manx Industrial Relations Service.

union boss Terry Pullinger said there had been some movement - but not sufficient to call off the strike, which is scheduled to begin on one of the Post Office's busiest times of the year - Valentine's Day.

In addition to protecting basic pay and a two-year fixed pay award, the Post Office is now proposing ’without prejudice’ a further three years of pay protection (making five years in total) for all employees.

It has also offered a phased buy-out of what it describes as ’outmoded and inequitable’ allowances, in order to smooth the financial impact.

A spokesman said: ’Having listened to employee and union member feedback, the Isle of Man Post Office board has moved materially to reassure its valued employees and provide them with greater financial certainty as we progress changes to modernise, adapting to our customers’ changing needs and to regulatory changes.

’Given our current financial situation and challenging trading conditions, the Post Office board and executive believe this to be a fair proposal, and a realistic basis to resolve the dispute with the CWU, so that we can all move forward.’

The pay offer comprises a 1% increase this year, backdated to April, plus a £200 lump sum, followed by a 2% rise for 2019-20.

There will then be a further three years of annual pay awards for all employees under collective bargaining.

The defined pension scheme will be retained for existing members who will be asked to increase their contributions by 6% and/or change benefits.

A new defined contribution scheme will be introduced for new starters who will also begin on a lower rate of pay which the board says will be fair and competitive and at a level that the service can continue to retain and attract staff.

Allowances, some of which were introduced 40 years ago, will be subject to a phased buy-out over two years.

The Post Office insists that if the proposals are not implemented, losses could rise to £4.5m by 2022. It made a loss for the first time in its history in 2017-18.

For its part, the CWU says it is fighting for the next generation of postal workers and for current staff who still have 20 years or more service to go.

It suggests after the five years there will be a permanent pay freeze. And it believes similar changes will be rolled out to other government workers.