Asda has been accused of using “fire and rehire” tactics, as well as cutting the pay of 7,000 workers, according to trade union GMB has revealed.
The Big 4 grocer is set to workers reduce night shifts and cut the pay by 60p an hour across 39 stores across the South of England.
However, those who do not agree to the pay reduction will require a new contract and could be fired if they refuse to sign.
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The trade union revealed, a consultation is now taking place with plans to be introduced in November.
According to GMB, the move is “an example of private equity slash-and-burn tactics to pave the way for Asda’s potential £11 billion debt merger with EG group“
“Cutting the pay of 7,000 low-paid, retail workers during a cost-of-living crisis is inexcusable,” GMB organiser Nadine Houghton said.
“The billionaire Issa brothers and their business partners, the multi-millionaire elite private equity fund managers in TDR Capital, are restructuring Asda in preparation for the debt-laden merger they are trying to push through with EG Group.”
Houghton added: “If the business secretary allows this merger to go ahead, she will be responsible for allowing a deal that is bad for workers, bad for consumers and bad for the high street.
“These slash-and-burn tactics, along with food and fuel price increases, will only ramp up if the merger goes ahead. TDR and the Issa brothers will be using Asda’s revenues to pay off their debt mountain – this is money that should be invested in stores, colleagues and ensuring proper competition in pricing.
“Asda’s workers and consumers should not bear the brunt of financial engineering from private equity.”
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