GMB Union representatives have slammed Asda’s working policies in a new letter that criticised the supermarket retailer for its cost reduction methods.

The retailer received criticism for its payment rates, and the GMB Union claimed that Asda’s staff were among the least-paid supermarket staff in the UK.

Nadine Houghton, GMB Union national officer, said in a letter that was read by The Grocer: “Shop floor colleagues are the backbone of Asda’s recovery, and GMB believes you have a deep understanding of just how fundamental they are to Asda’s turnaround.

“Whilst there is nothing illegal in how Asda has approached pay, we would argue it has certainly been immoral.”

Currently, the supermarket’s pay was £12.45 on 6 July and will increase to £12.60 per hour in October. This is far behind other comparable figures from its rivals Tesco (£12.64 an hour) and Sainsbury’s (£12.60 an hour).

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The GMB trade union called on Asda to raise its hourly rates immediately, backdate its pay increase to April, and have annual pay reviews in the union.

However, Asda reaffirmed its commitment to providing fair staff benefits, citing that it increased its hourly staff pay by 4.7% and opposed claims that it only left its minimum wage until the last minute.

An Asda spokesperson said: “Asda has invested over £500m in retail pay since 2021, including £80m in the current year. This year’s investment takes place in three phases, with rates rising from £12.04 in April to £12.60 by October. Asda is fully compliant with all National Minimum Wage requirements.”  

The news comes on the heels of potential job cuts at the struggling retailer as it aims to restructure its plans.