Asda staff revolt over £100m pay gap in Sainsbury’s merger

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Asda is facing a backlash on staff pay after it was revealed that Sainsbury’s staff will be paid 70p more an hour under new contracts.

According to The Mail on Sunday, workers’ unions have held discussions with Asda’s staff over the pay disparities between the two supermarkets which in the midst of a £12 billion merger.

Sainsbury’s announced earlier this year that it would ramp up its hourly pay rate from £8 to £9.20 from September 2018.

Asda also announced new contracts last year, but this would only see Asda raise pay from the minimum wage of £7.83 to £8.50, and many staff are still waiting to be moved onto the new contracts.

Staff at Asda are also understood to receive lower pension contributions, and fewer holidays.

It is estimated that raising the pay to match that of Sainsbury’s would cost £100 million.

“Asda staff are well aware that Sainsbury’s employees are earning more, whether that is under the existing contracts or the new flexible contracts,” GMB national officer Gary Carter said.

“They will be looking for the company to adopt best practice and for wages to increase.

“This is very affordable. Both of these businesses are very profitable. If you want thriving local economies and good communities, you need to pay decent wages.”

An Asda spokesperson said: “In the event of the proposed merger, Asda and Sainsbury’s contracts will remain separate and distinct, just as the businesses will. We will always have any discussions about our colleagues’ pay with them first.”

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2 COMMENTS

  1. With ASDA equal pay claims asda are just delaying the inevitable of back pay for 6 years and possibly pay the same rate as depot warehouse rates which is apparently a significant difference. The new contracts are on £8.67 and old contracts minimum wage £7.83. The new contracts extra £1 an hour at the time which they always give 2%, minimum wage rose just over 4% so its 87p difference now and this could possibly narrow with each pay review. IMO asda (New Contract) done this to get something because they know they have lost the case.i.e people on new contracts will get back pay at £1an hour less than those on old contracts i.e if it is found the difference between depot and stores is £2 an hour the new contracts will only get £1 difference from signing new contract unless they sign papers within 6 months of signing new contract (see GMB or Leigh and Day for help on this.) which asda has ignored to tell shop workers.

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