GXO has become embroiled in another pay dispute with its drivers on the outsourced Co-op delivery contract, three months after agreeing a 15% salary increase for drivers in Avonmouth.

Over 330 drivers and transport clerks in St Helens are now intending to take strike action later this month and the Unite union said this would have an immediate effect on supplies.

It said it had scheduled 40 days of strikes running until the end of August, with the first on 31 May coinciding with the Jubilee celebrations.

Unite said drivers are paid £14.77 an hour, but those employed on comparable contracts are often paid over £17 an hour.

Sharon Graham, Unite general secretary, said: “GXO’s refusal to pay our members the rate for the job means Co-op stores will now be short of goods.

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“This is a wealthy company that has no excuse not to pay proper wages.

“GXO needs to get real and make an offer that meets our members’ expectations. Unite will be giving these workers its full support until this dispute is resolved.”

In February, more than 100 HGV drivers employed by GXO on the Co-op contract in Avonmouth were given a 15% pay increase after they voted for strike action.

A GXO spokeswoman said: “We are committed to being an employer of choice for our employees and our customers.

“Discussions are ongoing in order to reach agreement with all parties involved.”