More than 60,000 Co-operative employees will receive a 8.5% pay rise over the next two years if the proposal is voted in by members of the trade union, Union of Shop, Distributive and Allied Workers (USDAW), in April.

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The proposal, which was developed by the Co-operative Employers Association with USDAW, would increase pay for a full-time employees by around £1,200 a year.

It applies to food store shop assistants and their supervisors. Other employees will be covered by separate arrangements.

The proposal has been designed to simplify existing reward practices, improve consistency and align the Co-operative to market practices among major food retailers.

The deal covers a number of the Co-Operatives in the UK, including; The Co-Operative Group, Central England Co-Operative, The Midcounties Co-Operative, Lincolnshire Co-Operative, The Radstock Co-Operative Society and Chelmsford Star Co-Operative Society.

USDAW is recommending acceptance of the offer by members, who are set to vote on the deal on 22 April.

Tim Knowles, secretary to the Co-operative Employers Association, said: “The proposals are a significant investment, estimated to be worth in excess of £85 million a year.

“Minimum pay rates for a full-time employee would increase by around £1,200 a year, which will complement the reward package on offer if an employee joins one of the Co-operative retailers in the UK.

“This is a great opportunity to attract, retain and engage with our customer facing employees.”

John Gorle, national officer at USDAW, added: “This represents a good step forward for staff and we are recommending that they vote for the deal.

“I’m sure that, in the current cost of living crisis, our members will welcome this above inflation boost to their pay. However, we remain committed to working toward making the Co-operative employers living wage employers.”