More than 150 MPs urge Asda to end equal pay dispute after billionaire Blackburn Issa brother steps back
More than 150 MPs called upon Asda’s bosses to settle an ongoing equal pay legal battle after Mohsin Issa confirmed he would be stepping down from running the supermarket.
The MPs wrote to Asda’s majority owners TDR Capital, urging for them to put an end to the ‘gender discrimination’ employment case,
The letter urged TDR Capital founding and managing partners Manjit Dale and Gary Lindsay “to urgently commence settlement negotiations with the GMB union”.
It came after more than 60,000 Asda staff began stage two of the largest ever private sector equal pay claim.
The case centres on the gap between what shop workers, mostly female, are paid compared to mostly male warehouse workers.
The GMB says the difference can be £3.74 per hour. The letter also claimed workers are currently “owed over £2 billion in back pay”.
The stage two ruling, on whether certain store-based roles are of equal value to certain depot roles, is due next year.
Nadine Houghton, GMB National Officer, said: "GMB members working in Asda stores will be delighted to know that politicians support their cause.
"Low paid women workers have propped up the profits of retail giants for too long, its time they are paid properly for the valuable work they do.
"The courts and now politicians are waking up to the scale of discrimination faced by women retail workers and now Asda's owners have a chance to do the right thing and pay them what they are owed."
What has Asda said about the dispute?
An Asda spokesperson said: “We fully respect the right of current and former colleagues to bring this case, however, we strongly reject any claim that Asda’s pay rates are influenced by gender.
“There are numerous different jobs within retail and within warehouses.
“We continue to defend these claims because retail and distribution are two different industry sectors that have their own distinct skill sets and pay structures.”
Who owns Asda?
Walmart still has a 10% holding in the supermarket group, while TDR Capital owns a 67.5% stake and Mr Issa the remaining 22.5%.
Asda’s performance has been lagging behind its peers and Lord Rose was recently reported saying he was “embarrassed” by its performance under his supervision, and believed Mohsin Issa should step back.
When did the Issa brothers buy stakes in Asda?
Brothers Zuber and Mohsin Issa bought Asda from Walmart in 2020, in a £6.8 billion deal with the backing of TDR Capital.
When did Mohsin announce he would be stepping down from his executive role?
Mohsin confirmed he would be stepping down from running the supermarket last week.
He will hand over the reins to chairman Lord Stuart Rose and the management team.
Mr Issa will remain co-owner of the chain, alongside private equity backer TDR Capital, and a non-executive on the board.
It comes as debt-laden Asda continues its hunt for a chief executive to lead the firm, saying it will update “in due course”.
Mr Issa said: “I have decided now is the right time for me to step back from my oversight role at Asda to focus on EG Group as sole chief executive.
“It is a very exciting time for EG Group, and I am looking forward to focusing on the business while supporting Stuart, Rob and the leadership team in my capacity as a shareholder of Asda.”
Who will take on Mohsin’s responsibilities?
Lord Rose will take on Mr Issa’s executive responsibilities at Asda on an interim basis, alongside TDR partner Rob Hattrell and the supermarket’s existing management team.
He said: “We respect Mohsin’s decision to move on from his role at Asda where his work is complete to be the sole chief executive of EG Group.
“We are very grateful to Mohsin for the role he has played in overseeing Asda.”
When did Zuber sell his stake in Asda?
Zuber Issa sold his stake in Asda TDR Capital in June.
He also said he would be stepping down as co-chief executive of EG Group after reaching an agreement to buy its remaining UK forecourt business and some food service sites for £228 million.
Zuber will keep his shareholding in EG Group and continue as a non-executive director, while his brother Mohsin will become sole chief executive once the deal completes, which is expected on October 31.