Saturday, December 09, 2023

UK
Lorry driver strikes threaten Christmas food shortages at Asda

Daniel Woolfson
Fri, 8 December 2023

A woman pushes a shopping cart at an Asda superstore at the Gateshead Metrocentre, in Gateshead

Asda is facing walkouts from lorry drivers over Christmas in a fresh blow to the supermarket’s billionaire owners, the Issa brothers.

Around 80 lorry drivers at the retail giant’s operations hub in Rochdale are plotting strike action over the festive break.

Union chiefs at Unite said the industrial action, which is due to take place across several dates in December and on January 2, could lead to shortages of chilled foods on supermarket shelves.

The workers, who are employed by the supply chain company Wincanton, have argued they are being paid £1.24 an hour less than counterparts doing the same role at a different Asda facility in Lutterworth.

They also claim to be receiving lower rates for overtime, as well as for night, weekend and bank holiday shifts.

The workers in Lutterworth are employed directly by Asda.

It is understood Asda plans to use its own drivers on days the strikes take place to limit disruption.

The threat of shortages comes as traditional supermarkets like Asda prepare for festive competition with discounters Aldi and Lidl, which have acquired market share during the cost of living crisis.

Asda’s market share has fallen to 13.4pc in November, according to recent Kantar data, down from 14.2pc in January of this year.

Difficulties retaining customers have coincided with political scrutiny over Mohsin and Zuber Issa’s ownership of Asda, as the brothers have faced questions over high levels of debt and complex business structures.

Mohsin and Zuber Issa have come under scrutiny as a result of the complex corporate governance structures they employ - on Super / Alamy Stock Photo

MPs have quizzed the Issas over whether billions of pounds in borrowings could prevent them from offering lower prices for consumers as inflation eases.

Over the past year, the Issa brothers have been scrambling to pay down debts by selling off assets across their sprawling empire, which includes fast food chain Leon and petrol forecourts business EG Group.

Unite regional officer Paul Lomax said: “Asda shoppers will be disappointed that shelves could run bare during the festive period, but this is entirely the fault of Wincanton and Asda for denying our members pay parity.

“Strike action can only be avoided if Wincanton makes a vastly improved offer, the ball is now firmly in its court.”

A spokesman for Asda said: “These negotiations are between Wincanton and Unite and we would encourage them to reach an agreement that is acceptable to both parties.

“We employ a large number of Asda delivery-driver colleagues who deliver to our stores every day and we are confident that customers will be able to get everything they need in store to enjoy a wonderful Christmas.”

A Wincanton spokesperson said: “We can confirm that we are currently in constructive talks with Unite and Asda to find a solution which is satisfactory for all parties based at our site in Rochdale. We have made a competitive offer which we hope is accepted, and which is currently under consideration by Unite and its members.”

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