Asda accused of cutting wages for thousands of loyal staff

Chain will get rid of paid breaks and cut the premium for working unsociable hours

Despite a rise in the basic rate of pay from £8.21 to £9 per hour, many employees will be out of pocket (PA)

Asda has been accused of leaving 3,000 loyal staff worse off by up to £500 a year under the guise of giving them a pay rise.

The supermarket chain plans to increase its basic rate of pay from £8.21 to £9 per hour but under the proposals it will also get rid of paid breaks, cut the premium for working unsociable hours and make night shifts shorter.

Siobhain McDonagh, the Labur MP for Mitcham and Morden, wrote to Asda chief executive Roger Burnley claiming that approximately 2,700 staff will lose up to £500 per year, with a further 300 being harder hit.

“For these staff, £500+ is a huge amount of money and would have a significant impact on their livelihoods,” Ms McDonagh wrote.

“I welcome any increase in basic hourly pay – but this must not be used to disguise a significant pay cut for 3,000 of your most longstanding staff.”

Asda’s 60,000 retail staff who are paid by the hour will retain their benefits of an annual bonus, colleague discount, pension and a discounted share plan, but they will be asked to work more flexible times such as on bank holidays.

Ms McDonagh raised concerns that while some might welcome additional flexibility, it will be “extremely difficult” for others who have built their lives around fixed employment hours, particularly if they need to arrange care or childcare.

The proposals will also see night shift hours, which are paid at higher rates, reduced to five hours between 12am and 5am. Ms McDonaugh queried why hours either side of this window would not be paid higher rates when it was “highly unlikely” that a night shift would be only five hours long.

Asda said the changes would bring it into line with normal industry practice.

Anthony Hemmerdinger, Asda’s senior vice president for operations, said: “As our customers continue to change the way they shop with us, we also have to be prepared to change to meet their needs, and a key part of delivering great service is having the right colleagues in the right place at the right time, which is what this contract aims to achieve.”

The supermarket is currently consulting on the proposals which could come into effect later this year.

Asda’s new contracts are similar to those introduced last year by its prospective merger partner Sainsbury’s, which will lead to around 9,000 staff seeing their salaries fall by up to £3,000 per year from 2020.

The UK’s second and third-largest supermarket chains are awaiting a final report into their tie-up from the competition watchdog, which is due to be published on 30 April.