Workers at US retailers Giant Food and Safeway have secured improved four-year contracts.

Employees represented by The United Food and Commercial Workers International Union in Landover and Baltimore voted in favour of the fresh agreement yesterday (1 April).

The agreement averted a threatened strike by 23,000 UFCW members.

The deal includes a US$1.50 wage increase over four years, an increase in starting rates for new employees, an increase in employer contributions to pension funds, advanced scheduling notices and no reduction in healthcare coverage, the union said.

Ahold-owned Giant said that it believed the new contract was a fair outcome.

“Our goal was to reach agreements with terms that will allow us to remain the leading supermarket in our marketplace. We believe these new contracts meet that goal and provide significantly improved wages and benefits to our store associates,” the company said.