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Asda faces strike action after plans to cut jobs and reduce pay

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On this episode of Talking Shop I’m joined by Alain Bejjani—former Group CEO of Middle East retail giant Majid Al Futtaim, and author of the definitive new book, NEXT: Leading Through the New Realities. Drawing on his childhood in war-torn Beirut, and his experience steering a $9.5bn dollar retail and lifestyle empire through a global pandemic, Alain brings an unmatched perspective on leadership under pressure. Today, we break down his crisis survival playbook for retailers operating in distress. We discuss why resilience must always outpace efficiency, the four assets a brand must protect at all costs, and how to turn macro-turmoil into a long-term direction that scales.

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Asda workers are reportedly planning strike action after the supermarket unveiled plans that could place 300 roles at risk across the business, and affect the pay of over 4,000 hourly-paid workers.

A union source told Sky News that GMB representatives met last week after Asda first revealed its set of cost-cutting proposals, with the union reportedly declaring the plans “unworkable”.

The supermarket had proposed replacing overnight shifts in 184 smaller superstores. If this proposal goes ahead, it could lead to the removal of up to 211 night shift manager roles and a change to the working patterns of around 4,137 hourly-paid employees. 

Asda said the proposal retains the number of hours available for employees to work in each store, but would see the removal of night shift premium paid to them on top of their existing hourly rate.

As well as the proposed shift changes, Asda also proposed a 22% reduction in work hours for its in-store Post Office branches. Four branches would marginally reduce their opening hours, which would affect 23 salaried Post Office managers and 200 hourly-paid employees.

According to Sky, the GMB has argued that many of those being asked to change their hours would be unable to afford the pay cut in light of the cost of living crisis. It added that the move would place “additional logistical difficulties” on staff as the revised shifts would finish at midnight.

The union nonetheless told Sky that it would hold constructive talks with the supermarket during a consultation period, with an aim to secure concessions to avoid the prospect of strike action. 

In a statement to Sky, national officer Nadine Houghton said: “Many Asda workers feel this is just a cost cutting measure, needed to alleviate the financial pressure of the debt leveraged bonanza to buy Asda – but it’s going to hit some of the lowest paid retail workers on the high street.

“These changes to night-time replenishment have outraged night workers, who will now lose between £300 and £500 a month. Many say they will not be able to afford to take the new hours being offered due to the loss of night enhancements and hours. We could see significant job losses.”

GMB and Asda have been contacted for further comment.  

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