STRIKE action at a supermarket depot was called off last night, after the union and management reached an 11th-hour pay deal.

GMB union members at Asda's non-fresh foods warehouse in Washington, Wearside, were due to start a 24-hour strike at 11pm last night.

More than 500 workers out of the 737 at the depot were expected to walk out.

Conciliation service Acas brokered talks between the GMB and the retailer, which resulted in an improved pay offer.

The union has suspended strike action while it ballots members over the deal.

Michael Hopper, regional organiser with the GMB, said: "The company seems to think that it is done and dusted.

"We have suspended the action, but we have not stopped it."

The dispute arose after the supermarket offered workers a ten per cent pay rise last December, but only if they agreed to exclude the GMB from future pay negotiations.

The workers declined and Asda reduced its pay offer to 4.5 per cent.

The new deal involves a 3.5 per cent pay rise backdated to January, and a further 1.5 per cent from October. But it also ties in workers to a rise of just 2.75 per cent next year.

"A lot of members are still unhappy," said Mr Hopper.

A spokesman for Asda said: "We have always been happy to talk face-to-face with the GMB. We are pleased that the GMB has decided to recommend the agreement forged at Acas on Tuesday to its members."

However, the retailer is pressing ahead with plans to shed 315 jobs at its depot.

The spokesman said: "This was always a completely separate issue."