AUS
NZ
UK
CA
USA
IND
Source: Makistock, Shutterstock
Summary
- UK-based supermarket Asda has lost the latest appeal in an equal pay case for retail staff, mostly women, which may force Asda to pay up £500 million as compensation.
- Over 44,000 female workers called for equal pay as their male counterparts working in distribution centres.
- The outcome will impact supermarkets giants such as Tesco, Sainsbury’s and others, as they are facing similar disputes.
UK-based supermarket Asda on Friday lost has lost the latest appeal in an equal pay case for retail staff, mostly women. The Supreme Court ruled in favour of Asda’s predominantly female shop floor workers, who demanded equal pay as their male counterparts working in distribution centres.
The new development would mean that the supermarket major may have to cough up £500 million as a compensation claim, which would be the largest claim in the private sector.
Equal pay dispute
Over 44,000 retail staff called for equal pay as of their predominantly male counterparts who work in depots. Male distribution centre workers earn between £1.50 and £3 an hour more than the women retail workers.
Also Read: Asda's petrol forecourts business to be sold to EG Group for £750m
This is the first major stage of the case, which has been running for a long time. The 2016 tribunal decision was also upheld by the apex court in 2019 prior to this latest appeal.
The second stage will determine if the store and distribution roles are on the same level, and hence the pay will be decided. In the third stage, factors other than gender will be ascertained.
Other Biggies face heat
The outcome of the case will also have an impact on about 8,000 workers who are involved in a similar equal pay dispute in other supermarket majors such as Tesco (LON:TSCO), Sainsbury’s (LON:SBRY), Morrisons (LON:MRW) and Co-op Food.
If all the above supermarkets lose these cases, it could result in about £8 billion worth of backdated pay claims, according to the UK-based law firm Leigh Day, which represents Asda workers at the court.
(Source: EODHD/Others, Thomson Reuters)
FTSE 100 listed Sainsbury’s stock price was trading down by 0.90 per cent at GBX 241.90 following the news on 26 March at 13:31 hrs GMT. Comparatively, the broader index, FTSE 100, which the retailer is a part of, was at 6,726.57, up by 0.78 per cent.
Another FTSE 100 listed supermarket major Tesco’s share stood at GBX 227.30, down by 0.18 per cent for the same period.
Also Read: Tesco PLC (LON:TSCO) and Pizza Hut caught paying staff below minimum wages
(Source: EODHD/Others, Thomson Reuters)
Meanwhile, FTSE 250 listed Morrisons stock price stood at GBX 180.50, up by 0.47 per cent, and the FTSE 250 index stood at 21,497.99, up by 1.04 per cent for the same period.
