ASDA threaten 7,000 workers with fire and rehire – GMB blames private equity ‘slash and burn’ tactics

Cutting the pay of 7,000 low-paid, retail workers during a cost-of-living crisis is inexcusable, says GMB Union

19 May 2023| News

Asda is set to hit more than 7,000 workers with a fire and rehire threat, GMB Union has warned.

The supermarket giant plans to tell workers at 39 stores across the South they will lose their 60 pence per hour ‘location supplement’ and have their night supplement reduced. Those who do not agree will have the new contract imposed on them and could be dismissed If they refuse to sign.

A consultation on the changes is currently underway, with plans to implement them in November. GMB Union says this is an example of private equity slash and burn tactics to pave the way for Asda’s potential £11 billion debt merger with EG group.

Nadine Houghton, GMB Organiser, said:

“Cutting the pay of 7,000 low-paid, retail workers during a cost-of-living crisis is inexcusable. The billionaire Issa Brothers and their business partners the multi-millionaire elite private equity fund managers in TDR Capital are restructuring ASDA in preparation for the debt laden merger they are trying to push through with EG Group.

If the Business Secretary allows this merger to go ahead, she will be responsible for allowing a deal that is bad for workers, bad for consumers and bad for the high street. These slash and burn tactics, along with food and fuel price increases, will only ramp up if the merger goes ahead. TDR and the Issa Brothers will be using ASDA’s revenues to pay off their debt mountain – this is money that should be invested in stores, colleagues and ensuring proper competition in pricing.

ASDA’s workers and consumers should not bear the brunt of financial engineering from private equity.”