Asda is to raise minimum hourly store wages while scrapping paid breaks in a move it claims will financially benefit most but leave around 5% worse off.
The supermarket wants to move all hourly paid retail staff in England, Scotland and Wales to a new contract that raises the lowest rate from £8.21 to £9 but also requires “more flexibility” over hours and departments.
Staff could have their hours and departments changed at three weeks’ notice under the proposals, and will be required to work bank holidays or take them as paid leave.
The single new contract will replace six different ones currently in place while “making it fairer to all colleagues and ensuring we can consistently provide the best service to customers,” according to Anthony Hemmerdinger, Asda senior vice president, operations.
Asda has begun a collective consultation process with staff on the proposal, with a view to introducing it late this year.
The terms include 28 days annual leave while Christmas Day, Boxing Day and New Year’s Day will remain voluntary and paid at double time if worked. As well as scrapping paid breaks, they also change the hours defined as the night shift, while introducing a pay ‘premium’ for those hours still classed as such.
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Non-pay benefits including staff discount, annual bonuses and pensions will remain unchanged.
Around 50,000 staff are already on a contract requiring flexibility over hours and departments, introduced in 2017 at an hourly rate of £8.50, according to Asda. Others ‘chose to remain on a variety of five other contract types already in place’, according to a statement.
Paid breaks provided under existing contracts varied, but for some included “meal break windows”, a spokeswoman said.
Similar proposals were recently voted on in Northern Ireland as part of a collective bargaining agreement, according to Asda. They were recommended for approval by union Usdaw and at a ballot were accepted by a yes vote by 84% of members on a turnout of 87%, the supermarket said.
Asda’s statement said the changes would also bring it ‘into line with widely known industry standards’, The supermarket was ‘maintaining its commitment not to use zero hours contracts, as colleagues would retain guaranteed minimum hours’ it added.
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‘While the vast majority of colleagues will benefit financially from the new proposals, Asda estimates that around 5% of its retail colleagues would be financially worse off. It proposes to provide a transitional payment to these colleagues, which it intends to agree during the consultation period.’
Hemmerdinger said: “Our colleagues do an amazing job every day and we want to continue to reward them with a higher rate of pay, plus benefits such as their annual bonus. As our customers continue to change the way they shop with us, we also have to be prepared to change to meet their needs and a key part of delivering great service is having the right colleagues in the right place at the right time, which is what this contract aims to achieve.”
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