A landmark legal case may cost Asda £1.2bn over pay disparities.
- An internal email suggests pay differences favoring distribution roles.
- Shopfloor workers reportedly face unequal pay compared to male counterparts.
- The tribunal outcome could impact the entire UK retail industry.
- Annual pay increases for Asda could rise by £400m.
In a significant development, a leaked email to ITV News indicates that supermarket giant Asda may face a substantial financial impact due to an emerging equal pay tribunal case. This case brings to light potential disparities in pay between female shopfloor workers and their predominantly male colleagues in distribution centers.
The email outlines a pay gap where male workers earn approximately £1.50 to £3 more per hour compared to their female counterparts. It also mentions a comparative scoring system assessing various job-related factors, where shopfloor roles slightly outscore those in distribution centers, with scores of 453 and 447 respectively.
The key issue under scrutiny is the supermarket’s adherence to equal pay within its workforce, a matter that is scheduled for a tribunal hearing in the next year. A ruling against Asda could result in compensation liabilities reaching up to £1.2 billion, with broader repercussions for the supermarket and retail sectors across the UK.
Nadine Houghton, a GMB National Officer, expressed concern over the structural discrimination faced by women in the retail sector, stating, “The entire retail sector has been built on the structural discrimination of women. Women’s labor has been significantly undervalued and it’s about time that society wakes up.”
Asda maintains that both male and female employees performing the same roles in stores and distribution centers receive equal pay. An Asda spokesperson described the report as a part of a complex and confidential legal case, highlighting the distinctive skills and pay rates inherent to retail and distribution sectors.
Earlier this fiscal year, Asda allocated a record £141 million toward a 10% wage increase for hourly-paid store employees, coupled with bonus incentives. However, should the tribunal rule unfavorably for Asda, the company may confront an additional £400 million in annual pay commitments.
This case underscores the ongoing challenge of achieving pay equality across the retail sector.
