// Asda to increase increase its basic rate for its hourly-paid retail employees to £9.18 from April 1 next year
// This follows an an increase to £9 from November 3 as all workers move on to a controversial new contract
// Asda says the basic hourly rate on the majority of contracts in April this year was £8.21
Asda has announced it will increase employees’ basic hourly pay as it remains in dispute with a workers’ union over the conditions of a new workforce contract.
The Big 4 grocer said it would increase its basic rate for its hourly-paid retail employees to £9.18 from April 1 next year, following an increase to £9 from November 3 as all workers move on to a “single, industry-standard contract”.
In London, which has an additional allowance to reflect the higher cost of living, basic pay will increase to £10.31 per hour.
- Asda maintains threat of sacking staff over new contract dispute
- Asda denies reports of 12,000 staff facing sack for not signing new contract
- Asda workers opposed to new contract hand in petition
The retailer said the basic hourly rate on the majority of contracts in April this year was £8.21.
“I’m pleased that we’re able to confirm a further increase in the basic rate of pay for our retail colleagues, which will be introduced next year, and give certainty to our colleagues despite an unpredictable economic landscape and challenging market,” Asda senior vice president of people Hayley Tatum said.
The announcement comes as the Walmart-owned grocer pushes ahead with new contract terms for shopfloor staff, known as Contract 6.
The GMB union representing staff have expressed fears that the new contract would see them lose paid breaks and forced to work bank holidays.
There is also speculation that thousands of staff could be up for being sacked next month if they do not sign the new contract by the November 2 deadline.
Asda has said the new contract was about increasing the take-home pay of more than 100,000 employees through an investment of more than £80 million and ensuring that everyone doing the same job is on the same terms and conditions.
It also insisted that the majority of its staff have supported the contract, and that more a signing it everyday while the speculation circulating in media is exaggerated and unsubstantiated.
“The overwhelming majority of our colleagues from across all our stores have signed onto the new contracts and while we appreciate that some of our colleagues find the changes more unsettling, we do not want any of them to leave,” an Asda spokesperson said earlier this month.
“We understand colleagues have commitments outside of work and will not be asking them to constantly move the time they work, their days or departments.”