According to the trade union, it has secured a “new and much improved pay offer”, which 5,000 of its members have agreed with.
However, members agreed to a the 5.5 per cent increase, which will go up to six per cent in February, after rejecting the 4% deal.
The planned strike of warehouse workers and drivers would have affected nine distribution centres. These locations included: Daventry, Goole, Hinckley, Lichfield, Livingston, Peterborough, Southampton, as well as two sites in Magor.
“After the overwhelming vote in favour of industrial action, Tesco reopened pay negotiations with Usdaw,” Usdaw national officer Joanne McGuinness said.
“I am pleased to say that we have been successful in achieving a significantly improved offer and Usdaw is recommending that members accept it in the ballot.”
Tesco added: “We’re pleased to have agreed a pay deal with Usdaw that it recommends to its members.
“Colleagues at these centres will no longer be taking industrial action. We look forward to delivering a fantastic Christmas for customers.”