Communication Workers Union agrees "deal of the century" that will secure Royal Mail workers a nine percent pay rise.
The Royal Mail's Christmas stamps will feature traditional festive scenes this year - designed by two young girls.
Postal workers have voted in favour of a one-day strike over issues linked to the controversial privatisation of Royal Mail.
Royal Mail is set to join London's leading stock index the FTSE 100 later this month, FTSE Group has confirmed.
Royal Mail, which began trading on the London Stock Exchange on October 15, will trade on the FTSE 100 from December 23 following a surge in its share price.
Blimey - Royal Mail and unions agree pay deal of more than 9 percent over next three years
And 200 pound lump sum for all employees this month - happy Christmas!
Royal Mail also says no outsourcing, no 'two tier workforce' until review in 2019 - ballot of staff inJan
A proposed agreement has been reached between the Communication Workers Union and Royal Mail on pay, pensions and other issues, the two sides announced today.
Business Secretary Vince Cable has "categorically rejected" claims that taxpayers lost out over the sale of Royal Mail.
The coalition has been accused of selling the company too cheaply after shares initially increased by more than a third and broke through the 500p mark within a week.
Appearing in front of the Business Select Committee alongside Business Minister Michael Fallon, Cable said the privatisation operation was good for the taxpayer and for the future of the six day a week delivery service offered by Royal Mail.
Mr Cable said no decision had been made on whether to pay a multimillion-pound performance bonus to banks which advised the Government on the sell-off, adding it could take years before a judgement is made.
Royal Mail's results are further proof the company should not have been privatised, the general secretary of the CWU has said.
The company announced a significant profit-increase in its first results since it was controversially floated on the London Stock Exchange.
Billy Hayes, general secretary of the Communication Workers Union, said: "These results are based on performance when Royal Mail was still in public ownership. The rise in profits is further proof that there was no need to privatise this successful company.
"A profitable, successful and well-loved institution was flogged on the cheap when these latest figures show it was healthy and in good hands. The Government's arguments continue to crumble. These profits should be public money, not paid out to hedge funds and City institutions in dividends."
Royal Mail shares rose by more than 4 per cent to 553p this morning after the publication of their results.
The value of shares has risen significantly since being valued at 330p in last month's initial public offer adding to concerns that the company was under-valued.
The group revealed operating profits nearly doubled to £283 million for the six months to September 29.
Royal Mail have reported a significant surge in profits in its first set of results since its floatation on the London Stock Exchange.
The group revealed operating profits nearly doubled to £283 million for the six months to September 29 from £144 million a year earlier.
Figures were boosted by £95 million after a VAT credit and lower-than-expected costs of its overhaul programme.
The Business Secretary will be quizzed by MPs today over the controversial privatisation of the company, with many critics accusing the Government of selling the company too cheaply.
Six senior bankers have been explaining to MPs why their advice led the government to undervalue Royal Mail when it was privatised earlier this year.
ITV News' Economic Editor Richard Edgar has been following proceedings:
Goldman Sachs and UBS were the investment banks that ran Royal Mail's flotation last month, while JP Morgan, Citibank and Deutsche Bank missed out on running the share sale, while broker Panmure Gordon attacked what it said was the undervaluation of Royal Mail.
The share price was set at 330p, valuing Royal Mail at £3.3 billion, but the shares jumped by over a third on the first day of trading, and broke through the 500p mark within a week.
The share price yesterday stood at more than 550p.
The CWU said this means the Government undervalued the company by more than £2 billion.