What has just happened?

Asda shop workers have won the latest key stage in their fight for equal pay in a lengthy court battle with the employer, receiving a ruling that could lead to a £500m compensation claim. The GMB union, which is backing the case, called the supreme court ruling a “massive victory”.[1 ]

What does this mean?

The supreme court ruled against the supermarket chain and backed a 2016 employment tribunal decision that the supermarket’s retail staff, who are mostly women, can compare their work to those in warehouse distribution centres. More than 44,000 shop workers say they should be paid the same as the predominantly male staff who work in the chain’s depots, and who receive£1.50-£3 an hour more in pay than the shop workers. Asda argued that physical working environments between retail and distribution staff are different, while the shop workers believe the work provides the same level of value to the grocer.[2]

The next stage in negotiations is for Asda to discuss back pay for those affected. Unequal pay has recently been the cause of many claims, with female cleaners and dinner ladies taking legal action over claims they were paid less than men who worked as refuse collectors or street cleaners.[3]

What does this mean for the law sector?

The win is the first major stage of what is set to be the biggest-ever equal pay claim in the UK private sector, which could have implications for workers in all the major supermarkets including Tesco, Sainsbury’s, Co-op and Morrisons, who are also engaged in equal pay disputes with their employers[4], as well as the High-Street retail chain Next.[5]

The legal firm Leigh Day, which is representing the Asda shop workers, has said that if the five supermarkets lose the cases brought by the workers, they could be facing backdated pay claims totalling £8bn.

By Hannah Phelvin

Assessing firms

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References

[1] Sarah Butler, ‘Supreme Court rules against Asda in workers’ equal pay case’ (The Guardian, 26 March 2021)

[2] Sahar Nazir, ‘What Asda staff’s Supreme Court victory means for retail’ (Retail Gazette, 31 March 2021)

[3] Sarah Butler, ‘Supreme Court rules against Asda in workers’ equal pay case’ (The Guardian, 26 March 2021)

[4] ibid

[5] Equal Pay Now, ‘What does the Asda Supreme Court ruling mean for Next Store Staff?’ (26 March 2021) <https://www.equalpaynow.co.uk/2021/03/26/what-does-the-asda-supreme-court-ruling-mean-for-next-store-staff/> accessed 19 April 2021

Disclaimer: This article (and any information accessed through links in this article) is provided for information purposes only and does not constitute legal advice.