Asda has defended its record on staff pay, after a new union poll claimed half of its workers didn’t think they would be able to afford a Christmas dinner this year because of the cost of living crisis.
Figures released over the weekend by the GMB Union, based on a survey of 3,200 of Asda’s 100,000 staff, claimed almost 90% were worried they won’t be able to heat their homes over the winter.
It came after moves by Tesco to bump up pay for frontline workers meant Asda became the worst paying member of the big four.
Its basic pay stands at £10.10 an hour, compared to Sainsbury’s £10.25, Tesco’s £10.30, and Aldi’s £10.50.
The GMB said it has written to Asda bosses asking them to increase the base rate of shop floor pay to £10.50 per hour immediately to help workers cope with the cost of living crisis.
“Without an urgent pay rise, Christmas will be cancelled for thousands of Asda workers,” said GMB national officer Nadine Houghton.
“The biggest squeeze on living standards in over a generation is an issue Asda bosses cannot ignore.
“We are now seeing mid-year pay increases being awarded by other retailers, leaving Asda playing catch-up instead of leading the way on staff pay and benefits.
“GMB is now calling on Asda to act quickly and invest in its staff to stop them facing a truly bleak winter.”
However, sources pointed out that until recently Asda was one of the highest paying supermarkets and that others had been “playing catch-up” in what effectively was a cycle in which retailers regularly swapped places.
Asda has given hourly paid staff two pay increases this year, totalling 8%, and it also offers staff a 10% discount in stores and online, including George, which increases to 20% during special events.
“We understand that the cost of living crisis is impacting our customers and colleagues alike, which is why we’re investing in keeping our prices low and supporting our colleagues,” said an Asda spokesman.
“We’re listening to our colleagues and taking action to support them wherever we are able. This year we have invested in two pay increases for our hourly paid store colleagues and were able to pay a bonus worth an average of £413 to a full-time, hourly-paid colleague. We’ve also listened to feedback from our colleagues and removed the qualifying period for their colleague discount, along with offering numerous special events throughout the year offering an increased discount.”
Asda added GMB had no mandate to discuss hourly retail pay, saying it engaged with rival union Usdaw.
Meanwhile The Guardian reported over the weekend that thousands of Tesco managers were taking a real-terms pay cut as the supermarket puts a squeeze on store managers, while offering bigger wage rises for lower-paid workers.
It said the supermarket’s team managers, who earn about £30,000 a year, say they have received as little as a 3% pay rise, despite inflation expected to hit 11% this month.
A Tesco spokeswoman said: “We’ve been working hard to support our colleagues across the business. We benchmark pay for all roles at Tesco to ensure they are competitive against the market and we’re also mindful of the broader economic pressures our colleagues face. Our team managers do brilliant work, day in day out, and in addition to their pay increase this year, they also received a bonus of 4.5% in May. We’re currently speaking to both colleagues and our union representatives to understand how we might be able to support these colleagues further.”
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