The GMB said it had called off the strike after winning collective bargaining rights at the supermarket's UK distribution centres.
GMB shop stewards met in London yesterday to discuss the outcome of last-minute discussions, hosted by the Trade Union Congress (TUC), between Asda chief executive Andy Bond and GMB general secretary Paul Kenny. Negotiations continued overnight.
Several previous attempts to reach an agreement between the two parties have failed.
Both organisations committed themselves to 'working together to rebuild relations, restore trust and conduct relations in a non-adversarial way'.
A distribution national joint council will be established, comprising Asda representatives and 8 GMB representatives. The consultative body will deal with issues ranging from human resources policies to environmental concerns and training and development. It will meet at least twice a year.
The supermarket was due to go to the High Court today to seek an injunction to stop the five-day strike, which was planned to begin after midnight tonight.
Asda claimed there were flaws in the balloting process used by the GMB, which meant people who do not work for Asda were being sent voting papers.
GMB general secretary Paul Kenny said: 'This agreement, which GMB and Asda Wal-Mart have worked very hard to achieve, heralds a fresh approach to representation and bargaining between the company and GMB.'
Asda chief operating officer David Cheesewright said: 'We're pleased to have signed an agreement acceptable to both sides, to end the dispute - good news for our customers and colleagues alike.'
An Asda spokeswoman said stock levels in stores were at 'pre-Christmas levels', because the supermarket had been hoarding supplies for weeks in preparation for industrial action. It expects the busiest shopping day of the year so far this weekend, when England takes on Portugal in the World Cup quarter finals.
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