Thousands of Asda workers have rejected a pay offer which has prompted fears of strike action.
Lorry drivers, warehouse staff and clerical workers at the 23 distribution depots that supply Asda stores have rejected an offer which would have seen pay rises of between 5% and 7.5.
A number of staff at the supermarket chain, owned by billionaire brothers Zuber and Moshin Issa, said they “can’t afford to shop there” due to cost of living rises and the below-inflation wage rise.
Almost 70% of the GMB union’s 8,000 members within Asda’s distribution network, which employs 12,000 people in total, voted against the pay rise, reports The Mirror.
The rise compares to inflation of 7.8% – on the retail prices index measure – while the legal minimum wage is set to increase by 6.6% in April.
In the same month government’s preferred measure of inflation – the consumer prices index – is expected to rise from 5.5% in January to almost 8%.
Union bosses have warned strike action could be imminent if Asda bosses don’t provide a reasonable counteroffer to staff.
Almost 80% of those balloted said they were ready to take action over the pay deal.
Nadine Houghton, a national officer for the GMB, said: “The UK is facing the worst cost of living crisis for a generation. Inflation is rampant and energy prices are out of control.
“Yet Asda workers are being taken for mugs with a 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.”
A cost-of-living survey of 800 Asda staff by the GMB union found employees are concerned about their finances.
More than 500 employees said the steep rise in prices was affecting their mental health.
About 5% admitted to taking time off because they couldn’t afford to travel to work and another 7% said they had used food banks.
Almost all (760) said they didn’t feel valued as a key worker by their bosses.
Asda, which is the UK’s third-biggest retailer with profits of £368million in 2020, was bought in 2020 by Zuber and Moshin Issa for £6.8bn.
The brothers, who started their empire after purchasing a single petrol station in Bury, also own eatery Leon and EG Group, the company responsible for a huge network of stations across the country.
Asda’s 123,000 staff were told earlier this month wages would go up to £9.66 an hour from April - a salary much lower than most other supermarkets.
Aldi, Lidl, Morrisons and Sainsbury’s all pay their staff over £10 an hour.
Tesco pays less at £9.55 an hour but this year’s pay increase is yet to be announced.
Jon Parry, the vice-president of Asda Logistics Services, said: “We value the key role our colleagues play to keep our stores well stocked.
“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.”
The next step ahead of potential strike action would be a meeting between the union, the supermarket and the conciliation service Acas.
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