Asda bosses have been strongly criticised for ‘forcing a real terms pay cut’ on its near 150,000 retail workers.
The supermarket giant has imposed a pay increase of just 3.25% on retail workers – far below the current retail prices index (RPI) inflation rate of 7.8%.
Earlier this week, more than 6,000 warehouse staff, clerical workers and HGV drivers based at Asda distribution centres voted that they would be in favour of industrial action over pay.
The GMB union said Asda had also made a pay offer for next year which ran the risk of taking workers below the national minimum wage, which the low pay commission predicts could reach £10.18 in 2023 on the current trajectory.
Asda is now lagging behind other supermarket on pay compared, GMB said in a letter to the company’s senior vice president.
Nadine Houghton, GMB National Officer, said: “Asda won’t allow GMB to negotiate pay for our thousands of retail members.
“Still, it’s hard to understand why they’re happy to be the worst paying supermarket.”
In the letter sent to Asda management she queried why the supermarket did not wish to protect its low paid workers against “the biggest cost of living crisis in 30 years after Asda relied on them during the pandemic”.
“Based on Low Pay Commission estimates, this pay cut will make Asda a minimum wage employer next year. That’s not good for Asda and it’s certainly not good for our members.
“GMB members are angry. We will be meeting with them in the coming weeks to discuss next steps”
It concluded: “The GMB would very much welcome the opportunity to discuss this with you and to consider ways that we could assist Asda in becoming one of the best paying retailers while avoiding the trap of consigning your colleagues to the minimum wage.”
Lidl is the UK’s top paying supermarket. Its minimum pay rate for employees outside London is £10.10 an hour, with rates of up to £11.40 for more experienced workers. Last week M&S raised minimum pay to £10 an hour for its workers.
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Asda has been contacted by Personnel Today for a response to the GMB’s letter.
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