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A landmark ruling in a decade-long equal pay dispute has positioned Asda on the brink of a potential £1.2 billion payout to thousands of workers. The Manchester employment tribunal’s decision marks a significant victory for approximately 60,000 claimants, predominantly female shop workers, who have been fighting for wage parity with their warehouse counterparts.
The tribunal’s judgement determined that 12 out of 14 lead claimants performed roles of equal value to their predominantly male warehouse colleagues, despite receiving up to £3.74 per hour less in compensation. This ruling encompasses various shop-floor positions, including checkout operators, bakery staff, chilled department workers, and employees in the George clothing sections.
The implications of this case stretch beyond Asda, potentially affecting workers across all major UK supermarket chains. Industry analysts estimate the total compensation for back pay across the sector could reach a staggering £8 billion. The GMB union, which has supported the case alongside law firm Leigh Day, has urged Asda to cease further legal proceedings and negotiate a settlement.
Two categories of workers – online shopping packers and store workers handling only packaged or tinned groceries – were not deemed to be of equal value, affecting approximately 11,000 claimants. The GMB is contemplating an appeal for these positions.
Asda’s management maintains its stance against the claims, stating that retail and distribution represent distinct industry sectors with separate market rates and pay structures. The supermarket chain, currently grappling with declining sales following a private equity takeover, faces one final legal hurdle: proving the pay disparity is not gender-related.
The case, initiated in 2014, represents a pivotal moment in the UK’s retail sector’s history and could set a precedent for future wage equality disputes across the industry. The ruling’s financial implications arrive at a challenging time for Asda, as the retailer navigates through competitive market pressures and operational restructuring.
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