Retailers may update employees’ contracts from time to time to benefit their business, and in most cases, the changes will be accepted by both parties. But what happens when the proposed changes leads drags the retailer into a bitter dispute with staff and unions?
Sahir Nazir of Retail Gazette talks to Naeem Arif
Signing contracts are a norm for staff who work in retail. So are updates to contracts – staff wouldn’t feel compelled to complain about a pay rise or more flexible working arrangements. But what is likely to happen if proposals appear less favourable?
Recently, Asda grabbed headlines for a bitter dispute with a workers’ union after it introduced a new contract for shop floor staff that resulted in changes to benefits and work hours. The Big 4 grocer was not alone. Wilko also recently felt pressure from the union when it introduced a contract change.
Like Asda, Sainsbury’s said the changes would work in favour of the majority of its staff and that they will cost rather than save money. Both grocers have offered top-up payments to longer-serving staff on older contracts.
Naeem Arif, of NA Consulting, said it was not unreasonable for businesses to evolve all aspects of their business.
“If you consider the pressure that retail is under, to cut overheads and meet the demands of a changing customer base, it does not seem unreasonable,” he told Retail Gazette.
“If we all want to save our high streets and town centres, then we all need to contribute our bit and according to reports a good proportion of Asda employees have accepted the grocer’s new contract which also offers an increased hourly rate.”
It’s arguable that the UK retail industry may see a growing number of retailers implementing contract changes to benefit their businesses, but these retailers may need to outweigh their gains and losses in the process.
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