Asda has issued a below-inflation pay increase to 123,000 of its retail workers, requiring them to accept pay well below the industry average, according to the GMB union.
The supermarket giant has imposed the below-inflation pay increase of 3.25% on workers, which means they will earn £9.66 an hour from this April, although London colleagues will receive £10.83.
Most UK supermarkets including Aldi, Lidl, Morrisons and Sainsbury’s all pay their staff £10 or more per hour, while Tesco increased its retail employees’ hourly pay to £9.55 last year.
READ MORE: Asda given ‘no choice’ but to face strike action if pay offer rejected, GMB warns
The news comes amid the highest inflation in three decades with the CPI for food at 5.4%, driving the cost-of-living crisis. Retail workers will also be hit by a 10% National Insurance tax hike in April, soaring energy bills and now, insufficient pay rises.
Last month, the Trades Congress Union urged for “sector-wide fair pay agreements” as real wages were “barely” set to grow in the next five years.
However, Asda has strongly denied it has forced its staff to resort to food banks and payday lenders, citing a 7.35% pay rise, spread over two years. Chief people officer Hayley Tatum defended the move, saying that Asda values the work of its instore employees.
“We value the great job our store colleagues do serving customers every day and reflecting this we are increasing their hourly pay rates by 7.35% over the next two years,” said Tatum, adding that: “Our hourly rates will rise to £9.66 in April and to £10.06 in April 2023.”
“We remain the only supermarket to pay all store colleagues a bonus, worth several hundred pounds a year on average, as part of a comprehensive benefits package.”
GMB national officer Nadine Houghton said: “The worst cost-of-living crisis in decades has seen them forced to use payday lenders and foodbanks while their mental health suffers.”
“Asda bosses should do better by their hardworking staff who kept the country fed throughout the pandemic.”
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5 Comments. Leave new
Yes it is. Asda workers have no choice with regards to accepting or rejecting the pay offer as there isn’t enough GMB members at store level to force a ballet. The 3.25% pay increase has already been decided as it was briefed out to colleagues today.
While asda bosses get millions in bonus as the workers struggle with a insulting wage increase of from April which minimum wage goes upto £9.50 and asda are going to give us £9.66 a 16p increase after 2yrs of delivering to customers in the pandemic in lockdown while asda delivery drivers where risking there lives every day and they insult us with this increase I hope they are ashamed with there selves
Exactly
Well that’s a lie, we don’t receive bonuses worth hundreds of pounds every year. The Issa brothers scrapped that as soon as they took over. I’m a delivery driver, that pay increase is insulting. Come April I will be moving to Sainsbury’s, Morrisons or Tesco. Why wait 2 years for a decent pay rise in line with inflation when they already offer a better deal. Think Asda need to be honest with themselves and realise people are going to work elsewhere.
Would love to know what percentage pay increase Hayley Tatum is getting this year?Hmmm….doubt she’ll announce that one.