‘Work well for less’?

Sainsbury’s workers face the threat of being sacked if they don’t sign up to new contracts that would see them lose paid breaks, premium Sunday pay and other perks including bonuses.

The row over the new contracts escalated this week when  more than 100 MPs signed a letter sent to prime minister Theresa May asking her to intervene and support workers who stand to lose thousands of pounds each year.

Unite had been consulting with Sainsbury’s management over the proposed contracts, which offered a pay rise from £8 to £9.20 per hour  but cut perks that would result in a net loss for thousands of workers. The consultation period was due to end on June 4 but bosses suddenly announced yesterday (May 24) that talks had finished.

Following sharp criticism from MPs and pressure from Unite, Sainsbury’s offered a handful of concessions, including adding £10m to the total pay settlement, but it is estimated that 9,000 workers will still lose at least £400 a year, with some thought to be potentially losing thousands of pounds.

‘It’s not right’

Now, if Sainsbury’s workers don’t sign on to the new contracts by September, Unite fears they will be made redundant. Many staff at Sainsbury’s are older workers in their 50s and 60s, who fear not being able to find another job if they’re sacked.

Labour MP for Mitcham and Morden Siobhain McDonagh, who wrote the letter to the prime minister and has taken up the cause of the 9,000 workers who are set to be worse off, slammed Sainsbury’s for its pay hypocrisy.

“How can a company that made pre-tax profit of £589m last year, with a CEO that receives £930,000 before bonuses, think it is right to force a pay cut on thousands of their most long-standing and loyal members of staff?,” she said. “It’s not right and it’s not British to ask people to work well for less.”

Unite national officer Joe Clarke likewise criticised Sainsbury’s management for forcing through contracts and ending the consultation period early.

“Bosses have cut short the consultation extension over the plans which will leave thousands out of pocket while still holding a gun to workers’ heads with the threat of sign up to the new contract or be out of a job,” he said.

Merger concerns

Clarke highlighted the “very real concerns” that the consultation process over the pay offer and new contracts were “nothing more than a PR exercise with the outcome pre-determined in advance of the recent plans to merge with Asda.”

Sainsbury’s announced in April a surprise merger with Asda – which is now being investigated by the Competition and Markets Authority (CMA) to determine whether the deal would reduce competition and choice for shoppers.

A petition started by a Sainsbury’s worker which has been circulated online for weeks has garnered more than 100,000 signatures.

“I personally stand to lose over £1,000 per year,” the worker noted. “Some of my colleagues will lose as much as £3,000. And it is those of us who have been with the company the longest that will be hit the hardest. Against all Sainsbury’s values, I am being asked to ‘work well for less’ if I am to keep my job.

“The morale at Sainsbury’s is lower than ever before, especially with the new uncertainty of how the Sainsbury’s/Asda merger will pan out. Many of us are wondering if we can afford to continue to work here, whilst the prospect of seeking new employment in our 40s, 50s and 60s is extremely frightening.”

Clarke said that Unite is now seeking legal advice over what he said the union believes is “a failure by Sainsbury’s to meaningfully consult. We would urge Sainsbury’s to follow the lead of Asda which has introduced new contracts for its workers on a voluntary basis.

“Sainsbury’s needs to stop threatening loyal hardworking staff with the dole and start engaging more positively with Unite by giving workers the assurances they have been seeking.”