Asda could be facing industrial action from warehouse workers after the chain proposed changes to its sick pay terms in exchange for a pay rise.
Thousands of Asda staff will today cast their votes, after unions rejected a pay deal that would have seen the grocer improve its pay offer in exchange for cutting sickness payments.
Bosses had initially suggested a deal to give staff a pay rise at the expense of their sick pay entitlement - including the first three days of paid sick pay in any sickness absence and the last 13 to 26 weeks of sick pay
In February, an overwhelming majority of Asda’s staff voted to reject base rate increases to warehouse and clerical staff ranging from 4.98% to 6.10%, and 6.49% to 7.53% for transport staff.
The grocer returned to the negotiating table with union GMB and offered to increase warehouse and clerical pay by up to 7.49% and transport workers’ remuneration by 8.31%
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However, it planned to fund the increases by cutting sick pay, which it said would “align this with policies in place elsewhere in the retail sector”.
The changes would see workers lose the first three days of pay in any sickness-related absence and the last 13 to 26 weeks of sick pay, according to GMB.
The ballot vote is not legally binding but will gauge support for a strike before the launch of a formal strike ballot.
Around 8,000 GMB members working in driver, warehouse and clerical roles have until May 4 to vote.
GMB national officer Nadine Houghton said: “These workers kept the nation fed during the pandemic when, in 2020, Asda’s executives awarded themselves a 38.8% pay increase.
“It’s sad that Asda now want to use the cost-of-living crisis to try to pressure these key workers into self-funding their own pay increase via cuts to their sick pay.
“With inflation soaring above 8% and the UK facing the worst drop in living standards in 50 years, it’s time these workers get a proper pay rise to help them make ends meet.”
Asda’s sick pay scheme was introduced in 2012 over concerns distribution workers where at increased risk of workplace stress and musco-skeletal issues due to higher pick rates.
Asda Logistics Services vice president, Jon Parry, said: “We have made two improved pay offers to the GMB that recognise rising inflation and would see clerical and warehouse salaries increase by up to 7.49%, and transport salaries by up to 8.91% if accepted.
"We are disappointed the GMB will not put this enhanced offer to members or give them the opportunity to vote on them in a ballot.
"We expect them to honour the National Recognition Agreement, signed by both parties in 2012, as this provides an agreed framework to resolve outstanding matters, such as through the conciliation service ACAS if required."
