This week, a significant equal pay tribunal for Asda workers commenced, which could set a precedent in the retail industry.
- The case potentially affects over 69,345 Asda employees, represented by the GMB union and law firm Leigh Day.
- Asda is required to justify pay disparities between predominantly female retail workers and male warehouse operatives.
- The legal proceedings follow a series of similar claims against other major retailers, including Next, Tesco, Sainsbury’s, and Morrisons.
- The outcome of this tribunal may compel Asda to pay out substantial compensation if it loses.
Earlier this week, demonstrations by Asda workers took place outside TUC Congress locations in Brighton and Manchester. These protests marked the beginning of Stage Two of an equal pay case involving over 69,345 Asda employees, orchestrated by the GMB union and Leigh Day law firm. The case intends to scrutinise Asda’s pay practices, particularly the disparity where predominantly female retail workers earn substantially less than their male warehouse counterparts.
Asda is expected to provide justifications for this disparity, potentially relying on an argument previously attempted by Next. However, Next’s similar defence that market rates justified pay differences was ultimately unsuccessful. The court ruled that differing market rates do not justify pay variances for similar roles if the work is of equal value.
The tribunal is comparing roles such as checkout operators and shop floor staff in retail against jobs in depots like truck operators. Stage One concluded in March 2021, allowing the comparison of store and depot roles for equal value evaluation. Stage Two commenced this week, involving intricate job comparisons, and will culminate in a ruling expected by 2025.
Should Stage Two rule certain retail roles as being of equal value to depot roles, the tribunal will advance to Stage Three. This stage would assess any gender-neutral reasons for pay differences. If no valid reasons are found, claims will be upheld, and compensation determined accordingly.
Moreover, the repercussions of this case reach beyond Asda, with similar claims in progress against Tesco, Sainsbury’s, Morrisons, and Co-op, representing over 112,000 employees collectively. Industry experts suggest that these cases could significantly influence pay practices across the retail sector, stressing the need for transparent and equitable pay structures.
The Asda tribunal’s resolution will likely influence the retail sector’s approach to pay equality, with broader implications across the UK job market.
