Supermarket group Asda could face strike action after thousands of its distribution staff turned down the management’s pay offer of between 5% and 7.5%.
Almost 70% of the 8,000 GMB union members in the supermarket group rejected the “below inflation“ offer in a poll, GMB said in a statement.
The union said almost 80% of its members among Asda’s warehouse and clerical workers and LGV drivers said they were ready to take industrial action over pay.
The retail price index (RPI) inflation rate is 7.8%, while inflation based on the government’s preferred measure – the consumer price index (CPI) - is 5.5%. The Bank of England is forecasting that CPI inflation will peak at 7.25% in April.
The legal minimum wage is expected to be raised by 6.6% in April.
Like other supermarkets, Asda is struggling with labour shortages, particularly lorry drivers, in its distribution network.
GMB said it will now meet members to discuss next steps.
“The UK is facing the worst cost of living crisis for a generation. Inflation is rampant and energy prices are out of control,” said Nadine Houghton, GMB National Officer. “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.”
Jon Parry, the vice-president of Asda Logistics Services, said: “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.”