Union leaders claim the £30m invested into extra staffing hours by Asda boss Mohsin Issa is a “drop in the ocean” compared with the investment needed to turn around the supermarket’s stores.
The GMB told The Grocer they had calculated at least £50m in cuts had been carried out by January of this year with more since then, meaning the reset revealed by co-owners Mohsin Issa and TDR Capital last week was insufficient.
Asda, which is due to release its Q2 results later today and reveal more plans for its turnaround strategy, announced it was investing the emergency funding into stores to improve the in-store experience, including extra staffing hours to help provide better service.
However, Nadine Houghton, GMB national officer, said: “We estimate the cost saved by TDR Capital on cuts to hours is at least £50m over the past two years.
“The real figure is likely to be more as our figures only go to January this year.
“It’s also worth pointing out that the interest of the debt from the takeover has increased by £30m this year alone.
“This is yet more money off Asda’s balance sheet that should be invested in stores, customers and colleagues.”
The union has been at the entre of a dispute with Asda over allegations of cuts in hours, poor health & safety and inadequate training, as well as the lack of collective bargaining and rights to negotiate on pay and conditions.
It claims eight million hours have been lost across Asda’s workforce in the past two years .
However, Asda strongly denies key elements of the union’s claims.
The latest clash with the union over staffing hours comes after action at Asda’s Wisbech store, in Cambridgeshire, in protest at issues including cuts to hours was cancelled after the union and Asda agreed to hold talks through Acas.
Further industrial action scheduled for Lowestoft tomorrow is also likely to do to arbitration The Grocer understands.
Tension between Asda and the union is continuing to ramp up, however, ahead of the equal pay claims brought by supermarket employees, nearly all women, who are demanding equal pay with staff working in Asda’s distribution depots.
The case is expected to have huge consequences across the supermarket sector.
A spokesman for Asda said: “Since acquiring Asda in 2021, the shareholders have invested £3.8bn to grow the business organically and via strategic acquisitions.
“This includes launching Asda Express, a nationwide chain of convenience stores, Asda Rewards, a successful loyalty programme now used by six million customers, and a £415m investment in retail pay to make Asda the highest-paying traditional supermarket.
“Recently, we announced a £50m store refresh programme to improve the look and feel of our stores, as well as a commitment of £30m to go towards colleague resource for the remainder of the year.
“We have increased the number of colleagues in our business by approximately 30,000 in the last two years.”
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