Asda refuses to remove sack threat as contract deadline looms

The supermarket giant wants its shopfloor staff to agree to a host of new terms, including a hike in the basic hourly rate of pay to £9, the removal of paid breaks and shorter night shifts, by this Friday.

But the GMB union has accused Asda of “bullying” and estimates that up to 12,000 employees could lose their jobs if they do not sign the new deal, known as Contract 6.

Retail Week understands, however, that the number of staff yet to agree to the terms is significantly lower than that, and Asda is confident that many of those workers will pen the deals before the end of the week.

Asda launched a consultation on the new terms, which would also class bank holidays other than Christmas, Boxing Day and New Year’s Day as “normal working days”, with around 60,000 staff back in May.

The retailer said at the time that the new contracts would “make 95% of colleagues better off overall” and offered to make “transitional payments” to those who would be hit by the deal.

The move brings Asda into line with a host of other retailers including Tesco, Sainsbury’s and Marks & Spencer, which have already made similar changes to the contracts of shopfloor staff over the past few years.

Asda initially introduced the contracts as a voluntary change back in 2017, offering its staff the option of switching to the new contracts or sticking with its existing terms.

Asda therefore believes it has been reasonable by only making the changes compulsory this year and is holding firm on its position, despite a late bid from unions calling on the grocer to remove the threat of dismissal ahead of Friday’s deadline.

An Asda spokeswoman said: “Throughout the consultation process on these changes we have taken colleagues’ concerns and feedback from representatives – including the GMB – on board and have been clear that we understand our colleagues have responsibilities outside of work and we will always help them balance these with their work life.

“We have been clear that we don’t want any of our colleagues to leave us and while the vast majority of colleagues have chosen to sign the new contract, we continue to have conversations with those who have chosen not to, to try and understand their concerns.

“It is vital that we make sure we are prepared to adapt to the demands of our market. Change is never easy, but we are determined that Asda remains a sustainable business for its customers and colleagues – now and in the future.”