Problems at Asda look set to continue as workers strike again
This week, Asda workers – with the support of GMB union – announced the latest strike action in a months-long string of collective action and demonstrations.
More than 150 workers at Asda’s Wisbech superstore will strike for the second time this year on August 2.
It’s another headache for the UK’s third-biggest grocer, which has seen sales shrink amid a shake-up of its executive team and ownership structure.
Private equity firm TDR capital is currently in the process of upping its stake in Asda with the purchase of Zuber Issa’s 22.5 per cent stake in the company.
Along with the billionaire Issa brothers, TDR bought the business in June 2021. The deal will bring the ownership of Asda to 67.5 per cent by TDR, 22.5 per cent by Mohsin Issa, and 10 per cent by Walmart.
Why are workers striking?
Protesters have said that TDR has slashed millions of hours from the shop floor in a bid to cut costs, leaving staff overworked and underpaid.
Workers’ complaints range from cuts in hours to poor quality training, as well as “bullying management”, a lax response to health and safety and a lack of collective bargaining with GMB, the union said.
Strikes and protests in April, May and June across four superstores have failed to create any conclusion despite a meeting with senior management.
“Staff have no confidence any of the issues are being properly addressed,” GMB union said.
A survey in June found that one in three Asda staff had been attacked at work, while more than half had suffered injury or illness on the job.
Comments under GMB union posts are littered with people who say they are quitting their jobs at the supermarket chain.
“I’m leaving my store this week because of the same reasons they’re striking… After five years, it’s not worth it anymore,” one comment reads.
An Asda spokesperson said: “We work with all of our colleague representatives in the important area of colleague security and also back calls for violence or abuse against retail workers to be made a standalone criminal offence in all parts of the UK and hope this is a priority for any incoming Government.”
Another headache for Asda
Asda has faced its fair share of difficulties in 2024: its second-quarter portion of the UK grocery market has dropped by 5.3 per cent over the last year, to 12.7 per cent of the market – the largest fall for any grocer, according to Kantar.
All other main UK supermarkets except for Co-op saw its market share rise.
Earlier this year, Asda reportedly cut prices by an average of 17 per cent on more than 280 items to get their prices in line with German discounters.
The executive team is going through a bumpy shake-up, too: Asda’s commerical director Paul Gillow and its chief transformation officer Mark Simposon have both left their roles this month.
Former Tesco executive Gary Mills was slated to join as interim retail director but decided against the position just days after being announced for it.
It has also been seeking a new chief executive to replace Mohsin Issa, who announced that he was looking to hand over the running of the supermarket back in March.
What has Asda said?
An Asda spokesperson said that the company had tried to co-operate with the union, and firmly denied that no action has been taken.
They said: “We have responded to all of the points the GMB have put to us regarding the Wisbech store and the proactive steps taken over several weeks have been welcomed by colleagues in store.
Therefore, we strongly reject the GMB’s claim that no action has been taken. We have offered to meet their representatives at ACAS to discuss the matter further. In the meantime, we have robust contingency plans in place and can reassure customers the store will be open as normal should this industrial action go ahead.”