GXO Logistics’ Motherwell drivers have won a “significant” wage rise and pay parity with other GXO drivers, after taking strike action in a dispute that had threatened to disrupt deliveries to major clients including Costco, Loch Lomond distilleries, Superdrug, Whyte and Mackay, Argos and TK Maxx.

The settlement, which was negotiated by union Unite, sees the drivers secure a 5% pay rise in basic pay backdated to April, with a 4% increase to be applied from January 1 2026 until the end of March 2027. There is also a boost to overtime payments. The deal also gives the Motherwell drivers pay parity with other GXO drivers.

The GXO drivers took strike action in early November and implemented a continuous overtime ban over a week, in an effort to drive a better wage offer from the company.

The drivers were demanding an improvement on the current pay offer and a rate which would bring them into line with other GXO drivers working on other contracts based out of Motherwell, which has been achieved through the new pay deal.

General secretary, Sharon Graham, said: “Unite has delivered a good pay deal for GXO Logistics workers in Motherwell.

“Our members must be congratulated for their brave stand against the company and this result only came about through the strike action they took.

“It’s another significant win for Unite in securing better jobs, pay and conditions for logistics workers.”

Andrew Brown, Unite industrial officer, added: “The GXO Logistics drivers fought and secured a hard won pay increase over two years. It puts them in line with other drivers doing the same job at the depot which was our key demand.”

GXO Logistics UK recorded a £33.6m operating profit after tax in 2024, up from £28.4m in the previous year.