Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsMergers and acquisitionsRedundancy

Union warns Asda-Sainsbury’s deal could lead to massive job losses

by Jo Faragher 30 Apr 2018
by Jo Faragher 30 Apr 2018 Yui Mok/PA Wire/PA Images
Yui Mok/PA Wire/PA Images

The GMB union has called the newly announced merger proposal between Sainsbury’s and Asda a “bargain basement” deal that could risk hundreds of thousands of jobs.

Dealing with a merger

More companies hold on to key staff after mergers, says report

TUPE: Good practice manual 

Sainsbury’s announced plans to merge with Asda – currently owned by US supermarket giant Walmart – this weekend, promising that prices would fall at both chains and claiming that there would be no store closures.

The deal now has to be considered by the Competitions and Markets Authority, as the combined market share of the two brands will be 31.4%, compared with Tesco’s 27.6% share of the grocery market (according to figures from Kantar Worldpanel).

According to Sainsbury’s chief executive Mike Coupe, who will run the new business, both brands would be maintained.

The combined purchasing clout of the two businesses could place suppliers under pressure, further risking jobs in the retailers’ supply chain. And despite promises of no store closures, analysts suggest that in order to gain regulatory approval it could become necessary to sell off some stores.

Together, the two businesses currently employ around 330,000 staff across a total of 2,800 stores.

Rebecca Long-Bailey, shadow business secretary, said she was concerned about an “emerging monopoly” if the deal goes ahead.

“It will be British shoppers that suffer from rising prices and British workers that may be fearing for their jobs if this goes ahead without adequate oversight and investigation,” she said.

GMB general secretary Tim Roache said: “It remains to be seen if this ‘supermarket sweepstake’ is the real deal or a bargain basement ready meal.

“Hundreds of thousands of workers stand to be affected, and all know such announcements tend to be followed by management speak like ‘rationalisation’ in the name of ‘efficiency’. What that usually means is job losses or cuts to pay, terms and conditions which would be wholly unacceptable.

“Not least because Asda workers have already voluntarily agreed to change their contracts to be more flexible in order to play their part and help their employer be more profitable.”

“Imagine turning up to your Saturday afternoon shifts only to learn this news, with no word from your employer at all – just speculation in the media. Our members are concerned for their futures and angry they’ve been kept in the dark.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Mike Cherry, national chairman of the Federation of Small Businesses, called upon Sainsbury’s and Asda to explain how the two companies would merge their supply chains, asking them to “give reassurance that cost savings won’t be achieved simply by milking their small suppliers for all they’re worth”.

Both Asda and Sainsbury’s are currently involved in substantial equal pay claims brought by thousands of woman who believe they were paid less than male counterparts for doing work of equal value.

Asda
Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

previous post
Hermes self-employment legal challenge begins
next post
Third of LGBT employees hide their sexual orientation at work

You may also like

Benify and Benefex merge to become Benifex

12 Feb 2025

Up to 2,300 jobs at risk as Aviva...

23 Dec 2024

Royal Mail takeover approved, staff to receive dividend

16 Dec 2024

Herbert Smith Freehills and Kramer Levin law firms...

12 Nov 2024

What do mergers mean for people management?

8 Oct 2024

Nationwide set to retain Virgin Money staff in...

7 Mar 2024

Yodel acquisition saves thousands of jobs

13 Feb 2024

Tesco Bank staff to transfer to Barclays

9 Feb 2024

Microsoft slashes 1,900 gaming jobs

26 Jan 2024

SOM and COHPA to merge

25 Jan 2024

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+