Asda is reportedly considering axing 7,000 staff in stores on the outskirts of London if they refuse to agree to a pay cut as the supermarket battles to close a $12 billion merger with EG Group.

The GMB Union, which represents retail workers, said staff in 39 Asda stores across the South of England were being threatened “with the sack” if they opted not to agree with the removal of the supermarket’s 60p per hour ‘location supplement’ – a longstanding extra staff pay boost which accounts for the higher cost of living near the capital.

GMB claims Asda wants to enact the cuts by November, noting that the supermarket is also consulting on whether to reduce a supplement for night workers.

“These slash and burn tactics, along with food and fuel price increases, will only ramp up if the merger goes ahead,” said GMB organiser Nadine Houghton. “This supplement is out of line with the wider retail market and has created an anomaly where some Asda colleagues in stores that are close together are paid different rates.”

GMB previously warned that Asda’s proposed merger with EG Group could put 100,000 jobs at risk and imperil the UK’s food supply chain.

Retail Systems has approached Asda for comment.

Share Story: