Top story
Law firm Leigh Day has announced it is seeking equal pay compensation for female Morrisons (MRW) workers that could add up to more than £1bn.
The law firm said it is launching a claim against the supermarket on behalf of women in stores who believe they are paid less than men in the distribution centres for equal work.
As Morrisons has around 80,000 store staff eligible to claim, then should their actions be unlawful the final bill for back pay could be in excess of a £1bn.
Leigh Day is already taking legal action on behalf of 30,000 staff working in Asda, Sainsbury’s and Tesco stores.
It said it believes that employees working in the predominantly male-dominated distribution centres are paid “considerably more” than the largely female-staffed stores, a trend that is seen across the biggest supermarkets in the country.
Emma Satyamurti, partner in law firm Leigh Day’s employment team, said: “We believe that Morrisons, as with the other major supermarkets, has underpaid those working in its stores for a number of years. The big four supermarkets in the UK make vast amounts each year in profits – it is time that they faced up to their legal obligations under Equal Pay legislation.
“Our clients believe that those working on the shop floor should be paid the same as those in the distribution centres, and a failure to commit to this is not only unfair but unlawful.
“This legal action is being taken forward to ensure that the work done in stores and distribution centres is recognised as being of equal value; not the same work, but work of equal value and that those working on the shop floor should be paid the same as their colleagues in distribution.”
The firm has lodged claims with the conciliation service ACAS while awaiting a response from Morrisons CEO David Potts, who they have written to on behalf of the first group of clients requesting Pay and Gender information for workers.
Leigh Day have also asked Morrisons to confirm if they have carried out an equal pay audit.
A Morrisons spokesperson responded: ““We are not aware of any court proceedings issued by a third party. We have received a letter asking us a number of questions about our pay policies. Our aim is to pay our colleagues fairly and equally for the job that they do, irrespective of their gender.”
Morning update
It’s a quiet morning on the markets ahead of half year trading numbers tomorrow from Morrisons and John Lewis/Waitrose.
Numerous media reports suggest Tesco is ready to unveil the first of its discount stores aimed to compete with Aldi and Lidl next week. CEO Dave Lewis is set to launch the first store – under the branding Jack’s – in Chatteris, Cambridgeshire, on Wednesday next week.
See this morning’s Media Bites for full details.
On the markets this morning, the FTSE 100 is back up 0.1% to 7,283.8pts.
Imperial Brands (IMB) and British American Tobacco (BATS) are once again amongst the fallers, both down 1.1% to 2,579p and 3,517p respectively.
Early risers include McBride (MCB), up 1.9% to 131p, Greene King (GNK), up 1.5% to 518.8p, Premier Foods (PFD), up 1.3% to 42.9p and B&M European Value Retail (BME), up 1.2%$ to 415p.
Yesterday in the City
The FTSE 100 fell back a further 0.1% to 7,273.5pts yesterday despite a weakening pound as worries over international trade and Brexit progress continue to dog the UK market.
The pound has rallied somewhat this week after more positive Brexit comments from the EU’s chief Brexit negotiator Michel Barnier, however the pound slipped back to US$1.299 from Monday’s US$1.302 despite solid jobs data in the UK.
Consumer stocks were particularly badly hit yesterday, with tobacco stocks Imperial Brands (IMB) and British American Tobacco (BATS) falling 3.3% to 2,608.5p and 2.7% to 3,554.5p respectively.
Also falling were C&C Group (CCR), down 2.7% to €3.41, Britvic (BVIC), down 2.3% to 792p, Ocado (OCDO), down 1.8% to 955p, Tesco (TSCO), down 1.5% to 236.8 and Marks & Spencer (MKS), down 1.2% to 288.9p.
Associated British Foods (ABF), fell 1.3% to 2,227p after its gains on Monday following its pre-close update.
Unilever (ULVR) defied the wider consumer gloom, rising 0.7% to 4,300p as it unveiled its plans to shift its corporate HQ to the Netherlands.
Produce Investments jumped 31.6% to 187.5p after it agreed a £53m takeover bid from private equity firm Promethean Investments.
Hilton Food Group (HFG) rose 5.3% yesterday to 990p after announcing a 25% sales jump in the first half of 2018, boosted by the strong performance of its newly acquired Seachill business.
Other risers included Majestic Wine (WINE), up 2.5% to 410p and Marston’s (MARS), up 2.1% to 98p.
No comments yet