Grocery store chain Asda is contemplating whether or not to chop the pay of seven,000 employees within the south east of England to deliver it in step with its different shops.
Employees at 39 shops outdoors the M25 have been paid extra for many years to offset a better value of residing nearer to London.
A spokesperson mentioned all Asda employees had lately been given a ten% pay rise to assist with hovering inflation.
The GMB union mentioned Asda was set to fireplace employees who refused to conform to the brand new circumstances.
The union mentioned the employees have been already low-paid, and that planning to cut back pay throughout a cost-of-living disaster was “inexcusable”.
The employees get a so-called “location complement” of 60p per hour, which Asda could scrap, and an evening complement that it desires to cut back, the GMB mentioned.
It added that those that don’t conform to the pay discount “may very well be dismissed in the event that they refuse to signal” the brand new contract.
The session is occurring in the meanwhile, and Asda plans to usher in the adjustments in November, the union mentioned.
It accused Asda-owners the Issa brothers of laying the bottom for a “debt laden merger” between Asda and EG Group’s UK petrol stations – which the brothers additionally personal.
“These slash and burn ways, together with meals and gas worth will increase, will solely ramp up if the merger goes forward,” mentioned GMB organiser Nadine Houghton.
Nevertheless, an Asda spokesperson mentioned the collective session was “in a small variety of shops” the place employees have been paid 60p per hour on prime of the £11.00 per hour nationwide price.
“This complement is out of line with the broader retail market and has created an anomaly the place some Asda colleagues in shops which are shut collectively are paid totally different charges,” the spokesperson mentioned.
Asda is discussing a “compensatory fee” in return for eradicating the complement.
“These discussions are ongoing and no last resolution has been taken,” the spokesperson added.
Asda has about 140,000 staff in complete.