A dispute over the transfer of 87 Coventry-based Co-operative Food drivers to haulier Eddie Stobart looks set to be resolved after further negotiations.

Unite said this week it will recommend its members accept the offer “hammered out after two days of hard bargaining” at ACAS.

More than 700 members across eight Co-op depots at Birtley, Newcastle; Carrickfergus, Northern Ireland; Castlewood, north Derbyshire; Coventry; Inverness; Newhouse, Lanarkshire; Plymouth and Thurrock in Essex will vote on the proposals next month.

The proposals include improved terms and conditions at the Coventry depot and a long term assurance from Co-operative Food that it has no further plans to outsource its logistics network.

Adrian Jones, Unite’s retail distribution national officer, said: “We are now confident that our members have a secure future with the Co-op and that our concerns about the future of in-house transport have been fully addressed.

“Our members have been given a firm commitment for their future in line with the business’ five-year plan. Our members at Coventry, who will be transferring to Eddie Stobart, have been given extra assurances that provide confidence for their own futures outside of the Co-op.”

The dispute flared up in January this year following Co-operative Food’s announcement of its plans to transfer 87 drivers to Eddie Stobart, as part of cost cutting measures.

Unite opposed the move, claiming Eddie Stobart’s approach to industrial relations compared to that of Co-operative Foods was “like chalk and cheese” and warning that the transfer of Co-op drivers to the haulier would herald further outsourcing of the Co-operative Food’s logistics network.

Andy Perry, the Co-operative’s logistics director, welcomed the breakthrough the ACAS talks had achieved. He said: “We are very pleased with the progress that has been made following talks and await the outcome of Unite's ballot to its members about the new proposals.

"We have reiterated that we have no plans to outsource any other part of our network and have tabled assurances regarding protecting terms and conditions."