Union letter to Asda boss accuses supermarket of ‘immoral’ tactics over pay

Union bosses have written to Asda chief Allan Leighton accusing the retailer of “penny-pinching” tactics that are seeing staff conditions fall behind those of its competitors.

It comes at the end of a week of rising tensions between Asda and the union, which claimed Asda store workers were among the lowest-paid supermarket workers in the UK, even after their latest pay rise.

Asda has hit back at the claims, stressing it has invested more than £500m in retail pay since 2021, including £80m in the current year.

On Wednesday, Asda announced a major in-store management restructure, which will see the merger of key leadership roles, in a move it said was aimed at “taking out complexity” from the business.

Today in her letter to the Asda boss, Houghton wrote: “Shop floor colleagues are the backbone of Asda’s recovery and GMB believes you have a deep understanding of just how fundamental they are to Asda’s turnaround.

 “Whilst there is nothing illegal in how Asda has approached pay, we would argue it has certainly been immoral.”

The union claims Asda made a decision not to increase pay at the supermarket at the last moment and has criticised its announcement in March of a staggered pay rise.

 Asda’s base retail pay hit £12.45 per hour on 6 July and is scheduled to rise to £12.60 per hour by October. However, the union claims competitors are already offering more, including AldiTesco (£12.64 per hour) and Sainsbury’s (£12.60 per hour).

 “It all adds up and our members view is pennies are being pinched from their pockets at a time when Asda needs everyone to pull together.”

The union called on Asda to agree to an immediate uplift, backdate pay increases to April and commit to annual pay reviews with the union.

Asda pointed out it was not the only supermarket to phase in pay rises, with Tesco’s rate increasing to £12.64 at the end of August, while Sainsbury’s rate is increasing to £12.60 at the start of August.

It also stressed that it increased hourly colleague pay by 4.7% this year, an above-inflation increase on a par with its competitors.

It denied leaving the minimum wage change to the last possible moment, claiming the change coincided with its pay cycle.

An Asda spokesman said: “Earlier this year, we announced an £80m investment in retail pay, with rates rising from £12.04 in April to £12.60 in October.

“This phased approach ensures we can continue to offer competitive rates and is similar to the approach taken by other major supermarkets.

“Asda has invested £500m in retail pay since 2021, as well as introducing a range of enhanced benefits – including 15% colleague discount and enhanced maternity, paternity, and kinship leave policies – reinforcing our commitment to supporting colleagues both in and outside the workplace.”