Asda shoppers could be facing empty shelves in the coming weeks, if a strike threatened by the chain's distribution staff gets the green light.
Almost 70% of the grocery giant's 8,000 GMB union members working within its delivery network have voted against a pay offer of between five per cent and 7.5 per cent.
Asda's 23 distribution centres, which employ 12,000 people in total, would all be affected if the strike goes ahead, including the one on Pattinson Industrial Estate, Washington.
Go here for the latest news on the cost of living
Asda has 36 stores in the North East, including superstores in Gosforth, Metrocentre and Benton, among others.
And nearly 80 per cent of drivers, warehouse staff and clerical staff balloted by the GMB said they were ready to take action over the pay deal, with some claiming that they could not afford to shop as Asda stores due to cost of living rises and the below-inflation wage rise.
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.”
The supermarket’s 123,000 staff were told earlier this month wages would go up to £9.66 an hour from April, much lower than most other supermarkets.
Rivals Aldi, Lidl, Morrisons and Sainsbury’s all pay their staff more than £10 an hour. Only Tesco pays less – £9.55 an hour –although this year’s pay increase is yet to be announced.
The pay 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.
The government’s preferred measure of inflation – the consumer prices index – is expected to rise from 5.5% in January to almost 8% in April.
Jon Parry, the vice-president of Asda Logistics Services, said: “We value the key role our colleagues play to keep our stores well stocked, and 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 supermarket chain, the UK’s third-biggest retailer, was bought in 2020 by billionaire brothers Zuber and Moshin Issa for £6.8billion and latest accounts say its profits in 2020 were £368million.
