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Asda Latest Supermarket Facing Strike Action; Tesco Reopens Talks With Unions

Following the news that Tesco is facing the threat of strike action at more than half of its 22 distribution depots over the busy Christmas period, union leaders are warning of similar action at Asda.

The GMB Union is balloting workers over what it describes as the supermarket’s failure to make a meaningful pay offer for distribution staff. It stated that with inflation “rampant”, the situation was a “kick in the teeth” for its key workers.

The ballot closes on 20 December.

In a statement, Nadine Houghton, GMB National Officer, said: “Asda workers turned up throughout the Covid pandemic risking their lives to keep the nation fed – as well as helping the company turn a profit of almost £500m.

“Staff who saw colleagues lose their lives to Covid are not having their legitimate demands for a pay rise treated seriously. Asda now say GMB members pay claim is ‘unaffordable’ and yet their hard work and sacrifice helped directors trouser almost £10m between them.

“It’s a disgrace – we urge Asda workers to fight for what they deserve and vote YES for a ballot for industrial action.”

An Asda spokesperson responded: “The GMB has recently made an additional pay claim on top of a two-year deal which was agreed with them in May. As our annual pay negotiations have just begun and discussions are ongoing, any talk of industrial action is premature.

“In addition, we have responded to the driver shortage by offering all of our existing HGV drivers a £1,000 one-off discretionary incentive retention payment.”

The GMB and Asda remain locked in a separate, long-running equal pay claim on behalf of 40,000 Asda workers. It relates to whether the predominantly female shop floor workforce deserves equal pay to that of those in Asda’s distribution centres.

Meanwhile, amid warnings that the planned strikes at Tesco’s depots could result in product shortages in its stores, the retailer has agreed to reopen discussions with union leaders.

Usdaw, whose members at nine distribution centres voted this week to strike in the dispute over pay, said it welcomed Tesco’s offer of further talks.

The drivers and warehouse workers had rejected a 4% annual pay increase and Usdaw is looking for the company to improve the offer to avoid pre-Christmas disruption caused by strikes due to start on 20 December.

Joanne McGuinness, Usdaw National Officer, said: “We welcome Tesco’s offer of further talks and we will engage positively to seek a resolution to this dispute.

“Industrial action is always a last resort for our members. We sincerely hope that fresh negotiations can result in an acceptable offer from the business to avoid possible stock shortages in stores in the week before Christmas.”

The union Unite, which represents workers at four other Tesco sites, later announced that its pre-Christmas strike action had been suspended after the supermarket group made an improved pay offer.

Unite said workers have been offered a minimum of a 5.5% increase backdated to July 2021 and an additional 0.5% from February 2022.

The union will now ballot its members on the offer and is recommending its acceptance.

NAM Implications:
  • As night follows day, surprised?
  • The Tesco settlement will be a pointer for others….
  • Companies will settle, to protect their Christmas business.
  • But realists (suppliers and retailers) will anticipate significant increases in shelf prices, come January…
  • (and BTW, forget government forecasts, we mean ‘significant’ increases, by category)
  • How about trying 10%, for size?