GMB Union says Asda will outsource delivery of its clothing brand George to DHL, risking up to 1,200 jobs in the process.
In a statement, the trade union said Asda currently runs distribution of its clothing label through three depots; Lymedale, North East Clothing and Brackmills.
However, under a possible restructure, “the work will all move to one depot run by DHL in Derby”, the statement said.
Related Story
GMB national officer Nadine Houghton said: “GMB’s priority is and always will be to protect our members jobs, we give our members our unwavering commitment on this.
“In the Lymedale depot alone there are 14 couples with children whose entire household income relies on working there.”
Responding to the trade union’s claims Asda spokesperson said: “The GMB statement that we are outsourcing all distribution of clothing is categorically incorrect. All three sites remain open, delivering to stores for in-store purchase.
“These proposals are about outsourcing the fulfilment of George.com online business.”
David Lepley, Asda’s chief supply chain officer, said: “This proposal supports the continued growth of our George.com business as we seek to achieve our ambition for George to become the UK’s largest clothing retailer by volume.
“The proposed change would begin in January 2027 and be completed later that year. Any colleagues who transfer will do so under TUPE (Transfer of Undertakings Protection of Employment) regulations, which protect their existing pay, pension, and length of service.”
Houghton added: “GMB is clear; the private equity buyout of Asda has been a disaster for workers, customers, the supply chain and communities.
“The recent job cuts announcement and now the outsourcing of clothing distribution paves the way for a full carve up of the company.
“It is time for TDR Capital to come clean and be honest about their plan for the business – they owe it to every single Asda worker.”
Asda’s executive chairman, Allan Leighton said: “The suggestion that we are looking to break up the business is categorically untrue and, frankly, insulting to all our colleagues.
“There is only one agenda in this business, it’s called the Formula for Growth, and we are solely focused on that.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
