Asda employees have held demonstrations to mark the commencement of an equal pay case involving over 60,000 staff members in the UK.
The GMB union reported that the predominantly female retail workforce at the supermarket chain earns up to £3.74 per hour less than mostly male employees in warehouse roles, according to the BBC.
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Seeking pay equity, its staff have held a protest in Manchester, where the issue has been brought before an employment tribunal.
Asda respects employees’ right to pursue the case but “strongly rejects” any claims that pay rates are determined by gender.
The GMB describes the case as the largest ever in the private sector, and the tribunal hearing is anticipated to last three months.
Brought forward by law firm Leigh Day, the claim argues that retail work represents value to the company equal to that of warehouse work.
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By GlobalDataA representative from the law firm indicated that, if successful, employees in the underpaid roles could be entitled to six years’ worth of back pay as compensation.
The demonstration marks the latest phase in an ongoing, more than a decade-long struggle for equal pay by Asda retail workers. Union leaders expressed confidence that the proceedings will demonstrate that retail and warehouse work is of equal value and should be compensated equally.
If the case succeeds, the financial implications for Asda could potentially reach billions of pounds, reported The Grocer.
In August 2024, the Employment Tribunal ruled in favour of employees at fashion chain Next in a case involving discrepancies in pay rates between retail and warehouse staff.
In a separate development, Asda has partnered with Wagestream to introduce a workplace savings account for its 150,000 employees.
The retailer is offering a 4.7% AER [annual equivalent rate] workplace savings account, fully protected under the Financial Services Compensation Scheme.
Unlike typical high street offerings, it imposes no fixed deposit requirements and allows fee-free withdrawals at any time.
Employees have two options for initiating their savings. They may choose to allocate a fixed amount to be deducted from their regular pay and directly deposited into their savings account. Alternatively, they can opt for the “rounding up” method, where their shift payments will be rounded up to the nearest whole pound, with the difference automatically transferred to their savings account.
With 36,000 employees already using the Wagestream app, the new savings account is anticipated to become a highly favoured benefit.
The savings account is part of a broader suite of financial benefits Asda offers through Wagestream. These include retail discounts, money coaching, options over when to get paid and workplace loans.
Asda chief people and corporate affairs officer Hayley Tatum said: “Financial wellbeing of colleagues is a top priority for us and offering this UK-leading workplace benefit is just one of the many ways we’re continuing to support our colleagues. This new benefit is alongside other financial benefits and support we already offer our colleagues at Asda, which includes financial education, budgeting tools, discounts and flexible pay.
“We’ve already had some really positive feedback from colleagues about these benefits and we’re looking forward to this latest roll-out, which we hope will have a positive impact for so many of our colleagues.”
