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Asda has announced a pay increase to £8.50 per hour from October 2017 in return for a new flexible contract.
The new contract offer, which Asda store workers can choose to accept or not, is £1 per hour higher than the Government’s National Living Wage increase due in April 2017.
The flexible contract means employees could be asked to work in different parts of their store or work different days or hours depending on peak hours. They will also agree to work Bank Holidays if required or take them as annual leave and all their breaks will be unpaid.
Asda is also maintaining its commitment not to use zero hours contracts and staff will retain guaranteed minimum hours. Whilst the new contract will require colleagues to be flexible, the company says “fair and reasonable notice” will be given for any changes to rotas and consideration will be given to those with care requirements outside of work.
Asda has calculated that 95% of current staff will be better off if they choose to move to the new contract type – some by over £1,000 a year. All new staff will automatically be offered the new contract type, with an increased rate of pay coming into play on 8th October. Existing staff who do not wish to move to the new contract are able to remain on their current terms and conditions and all will move to the increased National Living Wage on 1st April 2017 regardless of their decision around the Your Choice contract.
The GMB’s General Secretary Tim Roache said: “These new flexible contracts will help to ensure job security, ensure those accepting them are on the same terms and – best of all – ensure that people will earn more money as a result. The new contract offer involves quite a few changes, but as it’s voluntary, this allows colleagues to choose whatever suits their circumstances best.”