Big Four supermarket Asda is gearing up to cut pay for thousands of workers who risk losing their jobs if they do not accept, GMB union claims.
Some 7,000 workers from 39 southern-based stores could be hit with an ultimatum in November to give up a 60p per hour ‘location supplement’ or face being sacked, following an ongoing consultation.
GMB added cuts would be made to “pave the way” for a proposed “debt-laden” merger between Asda and petrol forecourt company EG Group, which are both owned by the Issa brothers.
According to GMB, the merger could place Asda in trouble, given it would combine the supermarket’s £4.7bn debt with EG’s £7bn, which is due to be refinanced in 2025.
Stores in Kent, Sussex, London, East Anglia and the south Midlands are all set to be affected, though Asda responded that “no final decision has been taken”.
“These slash-and-burn tactics, along with food and fuel price increases, will only ramp up if the merger goes ahead,” GMB organiser Nadine Houghton commented.
“Asda’s workers and consumers should not bear the brunt of financial engineering from private equity.”
An Asda spokesperson explained the consultation on cuts was focussing on “a small number of stores” where workers were paid 60p more than the £11 per hour minimum wage.
"This supplement is out of line with the wider retail market and has created an anomaly where some Asda colleagues in stores that are close together are paid different rates," they added.