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Sainsbury’s Facing Possible Supply Disruption From Strike By Distribution Workers

Union bosses have stated that Sainsbury’s could face product shortages in some of its stores this summer after third-party workers at a distribution centre in Scotland voted for strike action over pay.

Unite revealed that 96% of DHL workers on a 68% turnout voted to take strike action following the rejection of DHL’s final offer, which was described as a “real terms pay cut” amid RPI inflation hitting a forty-year high of 11.8%.

The union stated that its members are fighting for a fair pay deal that values their contribution to DHL and equal treatment by the company. It claims DHL is offering lower wages to workers based in Scotland when compared to other parts of the UK.

Unite represents over 300 DHL warehouse workers who are based at the distribution centre in Langlands Park East Kilbride. The site supplies Sainsbury’s stores throughout Scotland and Northern Ireland.

Unite general secretary Sharon Graham said: “Our DHL Sainsbury’s members deserve a fair pay rise and to be treated equally with their fellow workers based throughout the UK … We don’t do our members being treated as ‘second class’. They have their union’s full support in this fight for better jobs, pay and conditions at DHL Sainsbury’s.”

Negotiations had taken place under the auspices of the Advisory, Conciliation and Arbitration Service (ACAS). However, Unite has now served notice of the strike action after DHL didn’t make an improved offer in the talks.

Workers belonging to the union are now set to begin the week-long strike action from 6am on 13 August and continue each day up to 20 August.

Unite regional officer Willie Thomson commented: “Strike action is always a last resort, but our members have no option but to take a stand. The company will soon know the value of its workforce when there will be empty shelves in Sainsbury’s stores throughout Scotland and Northern Ireland. All our members are asking for is the same wage rise.”

A spokesperson for DHL Supply Chain said they had hoped talks would “reach a satisfactory outcome for both parties” but contingency plans are being drawn up and “every effort will be made to minimise disruption to services”.

A Sainsbury’s spokesperson added: “We have contingencies in place to minimise any disruption this may cause and continue to encourage both sides to keep talking.”

Several major retailers and manufacturers operating in the UK, including Asda, Coca-Cola and the Budweiser Brewing Group, have recently faced potential strike action over pay disputes.

NAM Implications:
  • ‘Sainsbury’s Facing Possible Supply Disruption….’
  • Kidding?
  • i.e. given stock cover sensitivity in retail, especially mults…
  • …any break in continuity will have consequences.
  • Anyone in doubt, please watch for rivals actions near Sainsbury’s affected stores.