Tribunal Favour Female Asda Workers in Equal Pay Claim Bringing Them Closer to a £1.2bn Payout

Thousands of female Asda workers are within touching distance of securing fair wages in what’s considered the largest private sector equal pay claim in UK history. This follows an employment tribunal’s ruling that confirms their work is of equal value to that of their higher-paid, predominantly male distribution centre colleagues.

Although the fight for fair pay isn’t complete, this decision pushes the female Asda employees one step closer to victory. Going forward, Asda will be required to justify the pay gap in the final stage of the legal process. Should it fail to provide a non-discriminatory reason for this discrepancy, the supermarket giant could be required to pay out around £1.2 billion in compensation.

Read on as we discuss the recent tribunal ruling. We’ll examine the history of the Asda equal pay case and outline what the GMB Union said about the decision. If you have any employment queries or believe your rights have been breached, please contact Redmans Solicitors now. As sector specialists, we can provide expert advice and discuss your possible next steps.

To begin, simply:

Tribunal Rules Female Asda Workers Hold Roles of Equal Value

In the case’s most recent hearing, the employment tribunal ruled in favour of 12 out of the 14 “lead claimants” representing the class action lawsuit of more than 60,000 individuals. Among the female Asda workers, roles like checkout operators, customer service assistants, and section leaders were found to be of equal value to their male colleagues in distribution centres.

This is significant, as it establishes that these women aren’t being paid less due to skill or responsibility differences. In fact, the ruling potentially highlights their grievances concerning a gender pay gap. These issues, which date back to 2014, concern Asda retail employees, who are predominantly women, being paid up to £3.74 per hour less than distribution centre employees, who are predominantly men, despite undertaking roles of comparable difficulty and responsibility.

While the case isn’t over, this ruling represents the second of three key stages in the fair pay process. Asda now faces the final hurdle—proving that the pay disparity is due to factors unrelated to gender. If it can’t, workers will be entitled to equal pay and up to six years’ worth of back pay. With individual claims estimated to be worth around £20,000 per worker, the total compensation could exceed £1.2 billion.

Unfortunately, not all female Asda employees received favourable rulings. Personal shoppers and edible grocery shop floor assistants were found not to undertake work of equal value. As a result, the claimants’ legal representation is considering their options, including a potential appeal regarding these positions.

The Decade-Long Legal Battle for Fair Pay

The female Asda workers’ case is part of a broader movement challenging the gender pay gap across the retail sector. Leigh Day, the law firm representing the Asda employees, recently helped Next workers secure victory in a similar claim and is currently helping staff in other supermarkets with the same issue.

Ultimately, each case boils down to the same fact. While warehouse work has historically been male-dominated, shop floor roles have typically been filled by women. As a result, outdated gender assumptions have led to women being paid less despite their roles having no objective difference. This goes against the UK equal pay law, which states that men and women must be paid the same for work of equal value unless a valid, non-discriminatory reason for the discrepancy can be provided.

The Asda equal pay case began more than a decade ago, during which the claimants faced numerous legal hurdles. Until March 2021, Asda attempted to argue that the warehouse and shop floor roles weren’t comparable. However, the Supreme Court disagreed, ruling the roles could be compared.

Subsequently, the second stage commenced, where a tribunal had to determine whether the work was of equal value. As mentioned, the tribunal’s latest ruling establishes that most female Asda workers’ roles were, meaning the final stage will begin. With this decision, Asda faces mounting pressure to either justify the pay gap or settle the case.

GMB Union Responds to Landmark Ruling

Following the recent ruling, the GMB Union, which has backed the female Asda workers throughout, provided a response. The Union’s National Officer, Nadine Houghton, claimed the decision was a “historic step” toward fair pay but was disappointed not all roles were considered of equal value.

Ms Houghton added, “These women have been fighting for what they are owed for more than ten years and are close to ending the era of retailers systematically undervaluing women.” In closing, she urged Asda to “stop wasting time and money dragging”, insisting they should work together to agree on a settlement.

What’s Next for the Female Asda Workers?

Now that many of the female Asda employees have been found to undertake work of equal value, Asda must provide a valid, non-discriminatory reason for paying distribution centre staff more than shop floor workers. This is known as the “material factor defence”.

Some potential justifications Asda may attempt to use include:

  • Skill differences: Arguing that warehouse roles require specialised skills not needed in retail.
  • Market forces: Claiming that wages for warehouse workers are higher due to industry standards or worker shortages.
  • Working conditions: Stating that warehouse jobs involve harsher environments or different shift patterns.

That being said, with previous rulings like the Next case in mind, these arguments may prove insufficient. Next attempted to reason that “market rates” justified its pay discrepancies, but the tribunal found this alone wasn’t a legitimate defence.

If Asda fails to provide sufficient justification, the tribunal may rule in favour of the claimants. With over 60,000 workers involved, the potential payout could exceed £1.2 billion—making this one of the largest equal pay settlements in UK history.

Since the case is ongoing, we’ll continue to provide updates as more unfolds. With legal pressure mounting and the recent Next ruling reinforcing equal pay claims, Asda faces a choice—fight or settle. We’ll be following the developments closely, so make sure to stop by to check for updates regularly.