Thursday, 09 February 2012

AWD comes early for Asda’s agency workers

Thu, 4 Mar 2010

Asda has reached agreement with the Unite trade union to pay agency workers in the food industry the same as permanent employees.

According to a report in The Times, Unite says that 6,000 workers would win improved pay under the agreement, which cover 29 suppliers.

Agency workers are paid between 30p and £1 an hour less than permanent workers doing the same job, says Unite.

Asda’s announcement comes ahead of the implementation of the Agency Workers Directive (AWD), due to take place on 1 October 2011.

The British Chambers of Commerce estimates the cost of the AWD to British industry as £1.5bn a year.

In a statement Asda says that after an investigation into working condition in the food industry, “we agreed with Unite that agency workers who do the same work as permanent workers should receive equal pay, and that agency work should not be used as a means of preventing them from accessing the same rights as permanent workers”.

Tony Watson, business development manager at Labour Tech Recruitment, a gangmaster in the food industry, welcomed Asda’s announcement.

Watson told Recruiterthat paying temporary workers the same as permanent employees was good news for the workers themselves, “who are currently being exploited, certainly around here”.

And it was good for those gangmasters who treated their staff fairly, because it would provide a more level playing field with more unscrupulous operators who undercut “squeaky clean companies like ourselves”.

Watson adds: “Some gangmasters pay the minimum wage but then don’t pay holiday pay, for example.  So hopefully by raising the wages this will give us a little bit more room for our profits.”

A spokesperson for Tesco told Recruiter: “The company works closely with suppliers to ensure that agency workers are treated decently and share good practice.”

A source close to Tesco added that there were question marks about how Asda’s announcement would work in practice.  For example, agency staff work for companies many of whom supply several different supermarkets and not just Asda.

Readers' comments (7)

  • Christine | Thu, 4 Mar 2010 12:47 pm

    Will that apply to agency drivers as well? Asda has cut agency drivers pay to the bone - their own drivers are paid well. We have experienced this especially when you are on a second-tier agreement. Very unfair that someone comes in and takes the jam, cream and butter off the cake.

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  • Jayne Johnson | Thu, 4 Mar 2010 12:53 pm

    'Some gangmasters pay the minimum wage but then don't pay holiday pay, for example. So hopefully by raising the wages this will give us a little bit more room for our profits.'

    I would hope that Asda is not using any agencies that do not pay holiday pay! I know via our food producing clients who supply to other large supermarkets that they are monitored (and therefore we are monitored) very closely. We have no hesitation in reporting other gangmasters who do not follow the GLA standards. Not with regards to improving our profit line but to ensure that workers are treated fairly. There are a lot of agencies out there who do bend the rules in the name of profit. It is time that the GLA and REC came down on them like a ton of bricks!

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  • Robin Brisley | Thu, 4 Mar 2010 1:08 pm

    As a GLA supplier of staff as well as logistics, we are continually being threatened by agencies who obviously take advantage of their workers. From travel schemes to umbrella, we are continually been undercut and run the risk of losing business. We and others like us would dearly love a level playing field where our lean business and honest dealings would set us above the dishonest in our business. Is it about time this industry is given standard regulations which are overseen and policed? Otherwise, the dishonest will thrive... is that what the UK wants?

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  • Sean | Mon, 8 Mar 2010 11:09 am

    You are all forgetting one thing, it means that we will have to charge our clients more, and in effect, will mean that it will cost our clients more to employ our agency that to employ their own staff. That will result in the client using fewer agency workers.

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  • steve | Mon, 8 Mar 2010 11:55 pm

    I work for chieftain insulation as a cleaner at BAE Systems at Barrow in Furness. I get £214 a week. Direct cleaners get £400 a week. How's that for a pay gap?

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  • agency worker | Wed, 31 Aug 2011 7:36 am

    i work for asda in chepstow. i am an agency worker on a night shift. i get £6.90 a hour and they get £11. My agency use umbrella schemes and travel schemes and work us 8 days straight

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  • Stephen Jenkinson | Thu, 20 Oct 2011 2:49 pm

    its a shame not all supermarkets are adapting the same as asda. sainsbury have decided that their agency workforce are not good enough for pay parity and have opted for the swedish derogation. we do the same work as fellow drivers, sometimes more. this is a shame dedicated drivers will be forced into poorer working condition while the rich prosper.

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