Asda, which is owned by the US giant Walmart, claims that 95% of its staff will be better off under a new deal, due to be introduced in October.
Staff will be offered a higher wage - £8.50 per hour - for a new contract, but signing up to the new contract will be voluntary. It has been designed to replace the zero-hours contract presently in force and given the seal of approval by the GMB union who state, “These new flexible contracts will help to ensure job security; ensure those accepting them are on the same terms and – best of all – ensure that people will earn more money as a result. The new contract involves quite a few changes, but as it’s voluntary, this allows colleagues to choose whatever suits their circumstances best.”
The ‘flexible’ agreement means that Asda’s staff can work around the store on different days and hours to suit their circumstances, but they must be available to work on Bank Holidays, if required. However, if they wish to take this time off, it will come out of their 28 days annual leave.
In addition, all breaks will be unpaid and the night shift deal presently in place will alter. Instead of receiving an extra £2.04 per hour for work between the hours of 10pm and 6am, the unsociable hours will be cut down to 12 midnight to 5am – but the extra wage earned will rise to £2.54 an hour.
Asda stated that it was “maintaining its commitment not to use zero-hours contracts and staff will be guaranteed minimum hours.” They added, “Whilst the new contract will require colleagues to be flexible, fair and reasonable notice will be given for any changes to rotas and consideration will be given to those with care requirements outside of work.”
Despite the GMB approving the use of the new contract, concerns have been expressed that employers are using them to take the edge off the increase in the national living wage, due to come in force in April. Last year, People Management reported that some organisations had cut overtime rates; reduced premiums for weekend or evening work or cut perks offered to employees in response to the new national living wage.
Research by the British Chambers of Commerce showed that ‘sharp increases’ in the national living wage would cause many employers to put into practice cost reduction measures such as cutting staff hours or increasing the cost of goods and services.
But Andrew Weir, employer services manager at HR and payroll firm Moorepay, expressed the opinion that Asda’s measures were sensible. He called on other employers to follow suit, provided that legal minimums such as provision of adequate rest breaks, etc. are upheld.
Sarah Peacock, partner in the employment team at law firm Blake Morgan, told People Management “There was a lot of publicity when the national living wage was introduced about employers that were changing terms and conditions to minimise the detrimental impact on their business, leaving some employees no better off. It may be that employers like Asda are now taking a long term view to make sure they can offer well above the NLW while achieving benefits for the business.”
