Matalan’s warehouse workers have agreed to a pay deal by just three votes following months of disagreement with management.

Employees at the Knowsley warehouse accepted a final pay offer of a 3.2% annual raise, which increases hourly rates to 24p above the minimum wage. The pay rise will be backdated to April.

The disagreement with management stems from supervisors being handed a £1,500 pay increase on top of a 2% raise earlier this year.

Union GMB became involved in the dispute and balloted workers yesterday, resulting in the close call.

Organiser Eddie Gaudie said GMB members had been “worn down” by months of negotiations and added that the close vote was a “clear warning to a troubled company that we are not going to put up with their antics any more”.

Matalan said: “This is the best award we have been able to make in several years. Matalan’s first priority has always been to act in the best interests of the whole workforce.”

According to the GMB, it is working with Matalan’s transport workers, who rejected the retailer’s current pay offer.

Earlier this month, the fashion and homewares retailer reported rocketing profits and sales in its first quarter, which it attributed to its ongoing focus on full-price sales.

EBITDA rose 37.7% to £22.3m in the 13 weeks to May 27, 2017.

Sales crept up just 1.3%, but full-price sales soared 21.5%.