Asda announces basic hourly pay rise amid new contract dispute

Asda has announced it is to increase employees’ basic hourly pay as it remains in dispute with unions over the conditions of a new workforce contract.

The supermarket said it will increase its basic rate for its hourly-paid retail employees to £9.18 from April 1 next year, following an increase to £9 from November 3 as all workers move on to a “single, industry-standard contract”.

In London, which has an additional allowance to reflect the higher cost of living, basic pay will increase to £10.31 per hour.

The retailer said the basic hourly rate on the majority of contracts in April this year was £8.21.

Hayley Tatum, senior vice president of people at Asda, said: “I’m pleased that we’re able to confirm a further increase in the basic rate of pay for our retail colleagues, which will be introduced next year, and give certainty to our colleagues despite an unpredictable economic landscape and challenging market.”

The announcement comes as the Big 4 grocer pushes ahead with new contract terms for shopfloor staff, known as Contract Six, amid employee and union fears it will see them lose paid breaks and forced to work bank holidays, or be sacked next month.

Asda has said the contract is about increasing the take-home pay of more than 100,000 employees through an investment of more than £80 million and ensuring that everyone doing the same job is on the same terms and conditions.

A spokesman said earlier this month: “The overwhelming majority of our colleagues from across all our stores have signed onto the new contracts and while we appreciate that some of our colleagues find the changes more unsettling, we do not want any of them to leave.

“We understand colleagues have commitments outside of work and will not be asking them to constantly move the time they work, their days or departments.”