The equal pay dispute involving Asda workers has been given the green light to proceed to its final legal stage, following an employment tribunal's ruling that store worker roles are of equal value to those in distribution centres.
The case argues that store workers, predominantly women, receive lower hourly pay rates than their counterparts in Asda warehouses, a sector largely dominated by men, as reported by .
The Tribunal ruled in favour of 12 out of 14 women serving as 'lead claimants' for various store roles, establishing that they hold equal value with some of the lead male comparators.
However, two were struck off, failing to meet the Tribunal's threshold, representing 20 per cent (11,000) of all claimants in the Asda dispute.
Law firm Leigh Day, representing the women, expressed disappointment that the two claimants - a personal shopper and shop floor assistant – edible grocery, were deemed not to be of equal value.
The firm stated they "are carefully considering this part of the judgment and will be exploring all available options, including the possibility of an appeal."
Asda employs over 127,000 shop floor workers across its more than 1,200 stores in the º£½ÇÊÓƵ.
In a similar case last August, fashion retailer Next lost a significant legal battle, resulting in an estimated £30m bill, although the retailer is seeking to appeal the decision.
The law firm stated that Asda's claim, if successful, could ultimately be valued at up to £1.2bn.
Does this establish a precedent?
Depending on the outcome of an appeal, the Asda case can proceed to the third stage, where Asda must provide a reason unrelated to sex for the pay disparity.
The Tribunal described the 12 remaining claimants as presenting a 'mixed picture' in terms of equal value, noting that the case would advance to the material factors defence stage.
Lauren Lougheed, partner at Leigh Day, observed that this ruling marked a "significant step for the thousands of Asda store workers who have established equal value."
Linda Wong, partner at Leigh Day, pointed out that "Asda has publicly cited financial pressures in the past as a reason for resisting these claims."
"However, the company’s recent financial reports paint a different picture, showing that it remains a profitable business capable of addressing pay disparities without significant hardship," she added.
Meanwhile, Nadine Houghton, GMB National Officer, urged, "GMB now calls on Asda to stop wasting time and money dragging this case through the courts and get round the table with us to agree a settlement."
Philip Richardson, partner at Stephensons, highlighted that "this judgment, whilst still subject to appeal, is another landmark moment for thousands of workers up and down the country."
"At its core, it underlines once again that there is no genuine reason for a disparity in pay between store workers and warehouse workers based solely on their sex," he concluded. Leigh Day has also lodged similar equal pay claims against Tesco, Sainsbury’s, Morrisons and Co-op.
An Asda spokesperson stated: "We strongly reject any claim that Asda’s pay rates are discriminatory. Asda will continue to defend these claims at the next stage of the litigation because retail and distribution are two different industry sectors that have their own market rates and distinct pay structures."
