Asda plans to ‘fire and rehire’ over 7,000 workers, GMB warns

More than 7,000 Asda workers are set to be hit with a fire and rehire threat, GMB Union has warned.

The trade union has claimed that the Big 4 grocer plans to tell workers at 39 stores across the South they will lose 60p per hour in ‘location supplement’ and have their night supplement reduced.

It added that those who don’t agree to the change will have the new contract imposed on them and could be dismissed if they refuse to sign.

A consultation is currently underway, with Asda planning to implement the changes in November.

GMB organiser Nadine Houghton said implementing the ‘fire and rehire’ plans during a cost-of-living crisis is “inexcusable”.

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The union has claimed this is an example of “private equity slash and burn tactics” to pave the way for Asda’s potential £11bn debt merger with EG Group.

“The billionaire Issa brothers and their business partners the multi-millionaire elite private equity fund managers in TDR Capital, are restructuring Asda in preparation for the debt laden merger they are trying to push through with EG Group,” Houghton said.

“If the business secretary allows this merger to go ahead, she will be responsible for allowing a deal that is bad for workers, bad for consumers and bad for the high street.”

Earlier this week, the union branded the trade secretary “tin-earned” as her department has refused to intervene.

Houghton added that if the merger were to go ahead, the “slash and burn tactics” along with food and fuel price increases “will only ramp up.”

“TDR and the Issa Brothers will be using Asda’s revenues to pay off their debt mountain – this is money that should be invested in stores, colleagues and ensuring proper competition in pricing.

“Asda’s workers and consumers should not bear the brunt of financial engineering from private equity,” she said.