Majority of Asda staff sign new contracts as grace period ends

A spokesman for the grocer said “just over 200” staff had refused to move across to the new contracts and lost their jobs as the grace period for signing up passed at midnight on Sunday. GMB, the Asda workers’ union, previously said as many as 12,000 staff could lose their jobs.

“Following a robust, fair and extensive consultation process, we’re pleased that almost 120,000 of our retail colleagues are now working on the same contract, with the same terms and conditions, and the same enhanced benefits package, including an increased hourly rate,” said the spokesman.

“This contract is about fairness for all our colleagues and moves us in line with our competitors.”

The new terms introduced by Asda, as part of ‘Contract 6’, include a hike in the basic hourly rate of pay to £9, the removal of paid breaks and shorter night shifts. The contracts also class bank holidays, except Christmas Day, Boxing Day and New Year’s Day, as “normal working days”.

GMB has fought the changes since they were first introduced earlier in the year.

A union spokesman told Retail Week yesterday it was gathering information and looking at those people who have lost their jobs and might consider legal action against the grocer.

The union published a survey at the beginning of the week that said 37% of Asda shoppers – the equivalent of 7 million customers – would be less likely to shop at the supermarket as a result of the wrangling over the new contract.

The Asda spokesman added: “Although we did not want anyone to leave us as a result of this necessary change, around 200 people decided not to sign the contract. We are sorry they didn’t choose to continue working with us but wish them well for the future.

“While retail as a whole is under continued pressure, we will do all we can to ensure we have a sustainable business for our customers, our colleagues and the communities we serve.”