Asda is facing potential disruption in its distribution operation after thousands of lorry drivers, warehouse staff, and clerical workers voted to reject the supermarket’s latest pay offer.
In a ballot of members of the GMB Union, 70% of 8,000 workers turned down pay rises of between 5% and 7.5%, whilst nearly 80% said they were ready to take strike action over the dispute. Asda’s distribution network employs around 12,000 staff in total.
Asda’s pay offer compares to inflation of 7.8% based on the retail prices index (RPI), whilst the government’s preferred measure of inflation – the consumer prices index (CPI) – is expected to rise from 5.5% in January to almost 8% in April.
Nadine Houghton, GMB National Officer, commented: “The UK is facing the worst cost of living crisis for a generation.
“Inflation is rampant and energy prices are out of control. Yet Asda workers are being taken for mugs with below inflation pay offer that basically means a real terms pay cut.
“They’re not going to take it lying down – it’s now up to Asda bosses to come back with a reasonable offer and avert the threat of industrial action.”
The GMB is planning to meet with members to discuss the next steps. Industrial action at Asda’s 23 distribution depots could cause significant disruption in supplies to its stores.
Jon Parry, VP of Asda Logistics Services, commented: “We value the key role our colleagues play to keep our stores well-stocked, and we have negotiated in good faith with the GMB to make a fair, competitive and sustainable pay offer that recognises rising inflation. We are disappointed this has been rejected.”
Asda stressed that any potential strike was a “long way off” as it expected the GMB to honour a national recognition agreement under which the next step would be a meeting between the union, the supermarket, and the conciliation service Acas.
At the end of last year, Tesco averted strike action by workers at its distribution centres by agreeing to increase their pay by 6%. A further strike by Unite members at Tesco’s Booker wholesale business planned before Christmas was suspended pending a pay review.
NAM Implications:
- Asda patently wants to avoid potential disruption of any strike…
- …whilst being conscious of the knock-on impact of any settlement on other departments.
- Equally, rival retailers will watch with interest…
- Meanwhile, any breaking of ranks by rivals in terms of above average wage rises could represent market share gains.
- NAMs need to watch this space…
