More than 40,000 Asda store workers WIN equal pay row

Asda bosses have lost a court fight with store workers who brought equal pay claims after complaining that staff working in distribution depots unfairly got more money. 

More than 40,000 Asda store workers, about two-thirds of whom are women, said staff working in distribution depots, most of whom are men, unfairly get more cash.

Bosses at Leeds-based Asda said store jobs were not comparable to distribution centre jobs, but justices at the Supreme Court in London today ruled against them.

The judges decided that store workers, who had made sex-discrimination claims, were entitled to compare themselves to distribution staff for equal pay purposes.

The Asda store workers said they have historically got less because most store workers are women, and most distribution depot staff are men.

Asda bosses have lost a Supreme Court fight with store workers who brought equal pay claims after complaining that staff working in distribution depots unfairly got more money

Lawyers from legal firm Leigh Day, who were representing the store workers, said distribution depot workers got between £1.50 and £3.00 an hour more.

Supreme Court justices were asked to consider whether Asda store workers are entitled to compare themselves to distribution staff for equal pay purposes.

Judges considered arguments at a hearing in July – and lawyers said the ruling will have implications for supermarkets, and other retailers. 

Store workers bringing claims are members of the GMB union, which hailed the ruling as ‘amazing news’ and a ‘massive victory’ for the store workers.

Susan Harris, the GMB’s legal director, said: ‘This is amazing news and a massive victory for Asda’s predominantly women shop floor workforce.

‘We are proud to have supported our members in this litigation and helped them in their fight for pay justice.

‘Asda has wasted money on lawyers’ bills chasing a lost cause, losing appeal after appeal, while tens of thousands of retail workers remain out of pocket.

‘We now call on Asda to sit down with us to reach agreement on the back pay owed to our members – which could run to hundreds of millions of pounds.’

An Asda spokesman said today: ‘This ruling relates to one stage of a complex case that is likely to take several years to reach a conclusion. 

‘We are defending these claims because the pay in our stores and distribution centres is the same for colleagues doing the same jobs regardless of their gender. 

‘Retail and distribution are very different sectors with their own distinct skill sets and pay rates. Asda has always paid colleagues the market rate in these sectors and we remain confident in our case.’ 

The litigation began some years ago. In 2016, an employment tribunal decided that store workers were entitled to compare themselves to distribution staff.

That decision was upheld by Court of Appeal judges in 2019. Asda bosses then appealed to the Supreme Court. 

Customers queue at the checkout at an Asda store in Nottingham on March 19 last year

Following today’s ruling, Jennifer Smith, employment law partner at JMW Solicitors, told MailOnline: ‘This is a significant ruling for the retail sector – along with the tremendous financial impact for Asda, the rest of the retail industry could now be exposed to similar group actions from their employees. If other retailers’ employees were to bring similar claims, the cost to the retail sector is estimated to hit £8billion.

‘Following today’s judgment, the retailer’s shop-floor workers will now receive a pay rise in line with their co-workers in the warehouse and distribution centres, which will be extremely costly for Asda. 

‘It could also be exposed to claims for up to six years’ back pay per employee – as could other retailers if claims are brought by their own staff.’