Asda has promised to give thousands of employees a pay rise but the move will not bring an end to a bitter contract dispute.
The supermarket giant says retail workers will receive £9.18 an hour or £10.31 an hour if they live in London from April 2020.
The company has already promised to increase pay to £9 an hour from Sunday, November 3 when the controversial Contract 6 will come into effect.
Hayley Tatum, Asda's senior vice president, said: “I’m pleased that we’re able to confirm a further increase in the basic rate of pay for our retail colleagues, which will be introduced next year, and give certainty to our colleagues despite an unpredictable economic landscape and challenging market.”
However, the promise of two pay rises has not won over GMB Union, which is still calling on Asda to scrap Contract 6 and return to the negotiating table.
Gary Carter, GMB national officer said: "Asda are using this 18p rise as a smokescreen to distract from the fact they plan to sack workers this weekend unless they sign a punishing new contract.
“It is unprecedented to announce an April pay rise in October – and Asda are clearly feeling the heat of opposition to the imposition of this contract.
“We do not yet know what inflation will be by that point, and so this could end up failing to keep pace with the cost of living.”
The union, which represents thousands of Asda workers, says the contract will put an end to paid breaks and force staff to work for £9 an hour on bank holidays.
According to GMB, thousands of workers have been told to sign the contract by November 2 or risk losing their jobs. however, Asda says this claim is "untrue".
Thousands of Asda workers from all over the country have taken part in in Leeds in recent month.
They also used a shopping trolley to deliver a petition opposing the contract, which has been signed by around 23,000 people.
During a demonstration in October, Tim Roache, GMB’s general secretary, said: "We will never agree to the imposition of Contract 6.
"We will never agree to our members having to sign a contract that says 'sign up or you're sacked'."
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