Asda is at the centre of a significant equal pay legal challenge that could result in a substantial financial impact.
- A leaked email suggests discrepancies in pay between shopfloor employees and their distribution centre counterparts at Asda.
- The remuneration gap highlighted involves predominantly female shopfloor workers earning less per hour than male distribution centre workers.
- Equality assessments showed shopfloor roles slightly surpassing distribution centre roles in job value, raising questions.
- The potential liabilities could extend to £1.2 billion in compensation, impacting the broader retail sector.
Asda, one of the UK’s largest supermarket chains, is currently embroiled in a considerable legal challenge concerning equal pay. This follows the leak of an email to ITV News, indicating that nearly 55,000 shopfloor workers, primarily women, are receiving lower wages compared to their male colleagues in distribution centres. The disparity is reported to be between £1.50 and £3 per hour.
The email in question evaluated the roles of both shopfloor and distribution centre workers across 11 criteria, including knowledge and responsibility. Interestingly, the study found that shopfloor positions, on average, scored slightly higher in these assessments with 453 points, compared to distribution centre roles, which accumulated 447 points.
This discrepancy in both pay and evaluation scores places Asda in a position where it must address these significant questions of wage equality when the case advances to a tribunal next year. Should Asda fail to defend their position successfully, they could face compensation payments reaching up to £1.2 billion, a figure that underscores the magnitude of this case not only for Asda but the retail industry at large.
Furthermore, should the tribunal rule against Asda, the company may experience an annual increase in their payroll expenses by as much as £400 million. This case is poised to set a precedent in the sector, bringing to light longstanding issues surrounding gender pay equity.
Nadine Houghton, GMB National Officer, remarked to ITV News, “The entire retail sector has been built on the structural discrimination of women. Women’s labour has been significantly undervalued and it’s about time that society wakes up.” An Asda spokesperson countered by describing the report as part of an ongoing, complex case, maintaining that male and female employees in similar roles receive equal pay within the company.
The potential outcome of Asda’s equal pay case could have far-reaching effects on the entire retail industry.
