Siobhain McDonagh, MP for Mitcham and Morden, has written to Asda chief executive Roger Burnley, expressing concerns over the company’s plans to change staff contracts.
The supermarket recently announced it was raising minimum hourly store wages but scrapping paid breaks, claiming the move would benefit most staff but leave around 3,000 of the 60,000 staff affected worse off. It is also ending premium pay and shortening night shift hours.
McDonagh said: “Asda is one of the high street’s most long-standing and well-respected brands. Of course, I welcome any increase in basic pay, but I am completely appalled that this is being used as a smokescreen to slash the salaries of 3,000 of their most loyal staff, under the guise of an increase in hourly pay.”
The MP called on the Asda chief to justify how 3,000 staff would be made financially worse off by the proposals, with approximately 2,700 of these 3,000 staff losing up to £500 per year and around 300 over £500 per year.
She said: “These consequences have been disguised by an increase in basic pay. But this increase comes at a cost, with staff set to lose paid breaks, premium pay and see the night shift hours shortened.”
Burnley said Asda was making the changes in response to changing shopping habits and was fully consulting with staff.
He said: "Although 50,000 of our colleagues are already on this contract, in the interests of fairness and to achieve the necessary level of flexibility we need all of our colleagues to be on the same terms. In return for this, we propose to increase the take-home pay of over 100,000 colleagues. This proposal represents an overall investment of at least £80m."
