Disruption in Asda’s distribution operation has moved a step closer after staff expressed support for possible industrial action in a dispute over pay and sickness entitlement.
Back in February, 70% of 8,000 unionised staff working in driver, warehouse and clerical roles turned down pay rises of between 5% and 7.5% amid a growing cost-of-living crisis. Asda’s distribution network employs around 12,000 staff in total.
The supermarket subsequently returned to the negotiating table with the GMB union and offered to increase warehouse and clerical pay by up to 7.5% and transport workers’ remuneration by 8.3%. However, it planned to fund the increases by reducing sick pay, which would “align this with policies in place elsewhere in the retail sector”.
The GMB said that the changes would see workers lose the first three days of pay in any sickness-related absence and the last 13 to 26 weeks of sick pay. As a result, the union rejected the demands and launched a ballot to gauge support for strike action.
The GMB announced yesterday that 95% of those who voted backed taking industrial action over what it called a real-terms pay cut.
The union said it would now meet with its members to discuss the next steps.
“This ballot result shows how angry Asda workers are,” said Nadine Houghton, GMB National Officer.
“They’re being asked to swallow a real terms pay cut while Asda’s top brass give themselves a hefty pay rise.
“There’s no way these keyworkers should be forced into self-funding their own pay rise via cuts to their sick pay. We will now meet with members to discuss next steps.”
An Asda spokesperson responded: “We have made two improved pay offers which would see warehouse salaries increase to up to £13.89 per hour and transport salaries to up to £16.25 per hour and are disappointed these were rejected by the GMB without giving their members the chance to vote on the proposal.
“We will continue discussions with the GMB, including independent conciliation and arbitration at ACAS if necessary, as part of the agreed dispute resolution process.”
At the end of last year, Tesco averted strike action by workers at its distribution centres by agreeing to increase their pay by 6%.
NAM Implications:
- This result spells trouble not only for Asda…
- …but could have a knock-on impact on other retailers.
- Meanwhile, the longer this issue remains…
- …the greater the impact of rising inflation.
