UK retailer Asda has announced that it will offer its 135,000 employees a base wage of £8.50 per hour, in return for more 'flexible' schedules.
The new voluntary 'Your Choice' contract, kicking off in October, offers one of the highest rates of hourly pay in the industry, Asda said.
Employees who agree to the contract will be asked to maintain a more flexible schedule, which may require them to work in different store departments or different shifts, depending on when and where they are needed most.
The contract will also require staff to work bank holidays, if necessary. Annual leave, including bank holidays, is capped at 28 days, and there will be a change in the 'night-shift window' and an increase to the night-shift 'premium'. All breaks will also become unpaid.
Other non-pay benefits, such as pensions and bonuses, will remain unchanged in the new contract.
'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,' the company commented in a statement.
Level Of Flexibility
Asda said that 95% of its current staff will benefit from the new contract, making up to £1,000 more per year. All new staff will automatically be signed up to the new contract.
The retailer emphasised that all employees will earn the National Living Wage of £7.50 (for employees over 25) on 1 April, regardless of their decision regarding the contract.
Asda’s senior VP of people, Hayley Tatum, commented, "Our current employment contracts have evolved over decades. They mean we have different colleagues on different terms, and they don’t give our colleagues the level of flexibility our customers need to meet their changing needs.
"Our customers shop in different ways at different times, and they expect us to deliver them the same great level of service whenever they visit us. This new contract will also mean that colleagues can gain a broader level of experience across their store, which will, in turn, give them better opportunities to progress and develop their career in retail."
Ensuring Job Security
General secretary Tim Roache of the GMB Union, which has a 'partnership relationship' with Asda, commented, "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 offer involves quite a few changes, but as it’s voluntary, this allows colleagues to choose whatever suits their circumstances best."
Union members of retail giant Tesco in Ireland recently voted for strike action after disagreeing with a Labour Court Recommendation about pre-1996 contracts. The recommendation would have allowed certain contract changes, such as a switch to a more flexible scheduling format due to modern pressures.
"Our business must be able to meet the needs of our customers, but terms and conditions nearly quarter of a century old do not take account of the growth of late-night, weekend and online shopping, and create unfairness, as hours are not evenly spread out," Tesco Ireland said in a statement.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up for ESM: The European Supermarket Magazine.
