Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Why Williams sisters return to SW19 is a win for Wimbledon brand

      Business professionals in a modern office discussing strategy with digital charts displayed on a large screen in the backg...

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Why Williams sisters return to SW19 is a win for Wimbledon brand

      Business professionals in a modern office discussing strategy with digital charts displayed on a large screen in the backg...

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      This Peugeot 205 GTI is the car you remember from your teenage years

      Vintage Peugeot 205 driving on a scenic road, showcasing classic design and compact size for a news feature on iconic cars

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Tuesday 16 April 2019 4:57 pm  |  Updated:  Monday 03 June 2019 1:05 am

Asda under fire over new employee proposals

Supermarket giant Asda has been accused of using a proposed pay rise as a "smokescreen" for unpaid breaks and shortened night shifts.

The grocery firm recently announced a set of potential contract changes for its workforce, pledging to hike the basic hourly rate of pay for retail employees.

Read more: Asda and Sainsbury's propose selling 150 stores to save merger

However, Labour MP Siobhain McDonagh wrote in a letter today that the new changes would include "a loss of paid breaks, an end to premium pay, and a shortening of the night shift" that would make 2,700 staff members up to £500 worse off every year.

The Mitcham and Morden MP added that a further 300 employees were set to lose "more than this amount".

She claimed that the potential changes would also result in night shifts being reduced to five hours, between 12am and 5am.

"I welcome any increase in basic hourly pay – but this must not be used to disguise a significant pay cut for 3,000 of your most longstanding staff," McDonagh concluded in her letter to Asda chief executive Roger Burnley.

In a letter of response to McDonagh this afternoon, Burnley wrote: "As a retailer, our job is to serve our customers’ needs. That means we need to have the right colleagues in the right place at the right time. As our customers change the way that they shop, we need to ensure that we have the flexibility to change with them in order to remain competitive."

He wrote that it would "not be appropriate to comment on the potential impact of our proposals on individual colleagues at this early stage, when we are currently engaged in ongoing dialogue with the appropriate representative bodies about the nature and scope of any potential changes."

 

McDonagh replied that  "the position is still that 3,000 hard working Asda staff are set to earn less as a result of these proposals".

"However you slice and dice it, that is the case. Many of these loyal staff work tirelessly through the night in order to earn more to meet their family’s needs, whilst Asda proposes this shocking pay cut in return."

Read more: Sainsbury's and Asda double down on £1bn price cut pledge to salvage deal

An Asda spokesperson added that the proposals would enable the group "to deliver better service to our customers in an intensely competitive marketplace and would make 95 per cent of our colleagues financially better off."

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Retail

Related Topics

Trending Articles

  • More Big Four blues as Deloitte plans to slash UK audit roles

  • Rathbones to suspend thousands of client account inflows after FCA probe deals £530m blow

  • FTSE 100 Live: Stocks sink further as interest rates held; Oil falls as ‘economic catastrophe’ avoided

  • Rolls-Royce shares surge as SMR unit bags multi-billion pound Swedish nuclear contract

  • Baillie Gifford in line for Anthropic windfall just months after £3.6bn SpaceX bonanza

More from CityAM

  • Ocado shares rocket after striking Asda home deliveries deal

    Retail
    Are Ocado's strong results enough to convince investors it''ll turn to profit?
  • More than 80 retail bosses urge Starmer to tackle youth unemployment crisis

    Retail
    Labour MPs are being warned a “perfect storm” of costs facing the retail sector could see seats lost to Reform UK.
  • As it happened: Stocks rise on Iran peace hopes; Asda and Ocado deal

    Markets
    Donald Trump wearing a green tie at a public event, addressing the audience with a serious expression in a formal setting
  • Lidl leapfrogs Morrisons to become UK’s fifth-biggest supermarket

    Retail
    Lidl store entrance with shopping carts and customers entering on a busy day
  • Labour warned not to kill off hybrid jobs millions rely on

    Politics
    London has defied national trends as job postings in the capital rose.
  • Tesco fuel sales drag up slowing growth

    Retail
    Tesco shares have reacted positively to the retailer's latest update.
  • M&S boss says supermarket price caps ‘completely preposterous’

    Retail
    Stuart Machin, the chief of Marks and Spencer
  • Investec shares rise amid takeover speculation

    Investing
    Investec has selected the four winners of its Beyond Business programme

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies