Asda plans to ‘fire and rehire’ 7,000 workers, claims union

ASDA has been accused of threatening to “fire and rehire” 7,000 employees in a pay dispute, as the supermarket’s owners prepare to merge their petrol and forecourt business.

The GMB union said thousands of workers across 39 stores in southern England will lose location-based pay supplements and be paid less for night shifts. Asda employees who do not agree with the changes will have the new contract forced on them and could be dismissed if they refuse to sign, the trade union said.

GMB national officer Nadine Houghton said: “Cutting the pay of 7,000 low-paid retail workers during a cost of living crisis is inexcusable.”

Asda has confirmed that discussions are ongoing with a “small number of stores outside the M25” about scrapping

‘Cutting the pay of 7,000 low-paid retail workers during a cost of living crisis is inexcusable’

the location supplement. An Asda spokesman said: “We are holding a collective consultation in a small number of stores outside the M25 where colleagues are currently paid a legacy location supplement of 60p per hour on top of their existing rate of £11.00 per hour.

“This supplement is out of line with the wider retail market and has created an anomaly where some Asda colleagues in stores that are close together are paid different rates.”

However, the supermarket chain said it is exploring a “compensatory payment” for workers who lose the location supplement under the proposal.

“These discussions are ongoing and no final decision has been taken,” the spokesman added.

The restructuring comes as the billionaire owners of Asda prepare to merge the supermarket chain with the UK division of their petrol and forecourt empire EG Group.