Fair Pay UK
Supermarket equal pay claims: reasons why shopfloor workers deserve equal pay
It would be a bitter pill to swallow if this was done in the open with full transparency.
Would you do work of equal value to a colleague, but receive up to £3 per hour less because paying you equally would cost too much? That is, in effect, what many supermarket shopfloor workers are being asked to accept.
We say the principle is clear: equal work deserves equal pay. But workers are likely to hear arguments that paying store staff more would be too expensive, too difficult, or unfair on the business. But we say those arguments are false and need to be challenged.
“Paying workers equally would cost too much”
Of course, fair pay costs money. But almost every correction for unfair pay costs money. That does not mean workers should go without pay they may have been owed.
If shopfloor roles were paid unfairly, the issue is not whether putting that right affects profits. The issue is whether protecting profits should come before paying workers properly.
“The business could not absorb the cost”
Large supermarkets are not small employers with no options.
They manage complex staffing models, pricing decisions, supply chains and profit targets every day. A large business may respond to higher wage costs in different ways, including improving efficiency, reducing staff turnover, adjusting hours, spreading costs over time, making limited pricing changes or using wider financial resources.
“Supermarkets operate on thin margin and can't afford pay rises”
Let’s not forget the scale of the businesses we are talking about. The ‘big four’ supermarkets are among the most powerful retailers in the country. They generate billions in profits and hundreds of millions in underlying earnings, while senior executives receive multi-million-pound pay packages.
According to the recent available information:
Tesco chief executive Ken Murphy was paid £10.8 million, while Tesco reported around £3.15 billion in adjusted operating profit.
Sainsbury’s chief executive Simon Roberts was paid around £5.43 million, while Sainsbury’s reported around £1 billion in retail underlying operating profit.
The same data is not as readily available for Asda and Morrisons, but latest available figures suggest their highest-paid directors received around £1.7 million and £2.8 million respectively.
Against that backdrop, it is hard to justify asking shopfloor workers to accept unfair and unequal pay.
These are the people who keep stores open, shelves stocked and customers served. The question many workers will rightly ask is: if supermarkets can afford huge profits and multi-million-pound executive rewards, why should loyal shopfloor staff be expected to carry the cost of unfair pay?
“The total cost would be too high”
If supermarket equal pay claims succeed, the total cost for them will be significant. But that would be because the alleged unfairness was widespread and long-running.
A large total does not make individual claims less important. It may simply show how many workers could have been affected, and for how long.
For workers, a few pounds an hour can become thousands of pounds over time. For someone working 25 hours a week, a £3 hourly difference is £75 a week.
That money could affect bills, rent, food, debt, childcare, savings and retirement.
“Store work is different from warehouse work”
Store work and warehouse work do not have to be identical.
Equal pay law asks whether jobs may be of equal value, looking at things like skill, effort, responsibility and working conditions.
Across the supermarket equal pay claims, store workers are asking whether shopfloor roles, which were more often done by women, were paid less than warehouse or distribution centre roles, more often done by men, for work of equal value.
Say no to unfair pay
Workers should not be expected to swallow unfair pay so supermarkets can protect their profit margins.
If you worked in-store for Morrisons, Asda or Sainsbury’s, you may be able to join the equal pay action.
Do not let the big supermarkets assume workers will accept unequal pay. Join thousands of current and former colleagues standing together in equal pay group claims and check whether you could be owed money.
Say no to unfair pay. Protect your position. Join the claim today.