Asda shop workers have won the latest stage in their fight for equal pay in a ruling that could trigger a £500m compensation claim.
The supermarket giant appeared before judges in the Supreme Court on Friday, after appealing a tribunal ruling in 2016 which concluded shop floor workers should be considered equal to distribution centre staff.
More than 40,000 Asda store workers, about two-thirds of whom are women, are part of the equal pay claim - which argues that staff working in distribution depots unfairly get more money, The Mirror reports.
The shop workers say they should be paid the same as the predominantly male staff who work in the chain’s depots, and who receive a higher wage of £1.50-£3 an hour more.
Leigh Day, the law firm behind the equal pay claims, said anyone who has been paid by the hour and worked in a store in Scotland or England could be entitled to join the claim.
Wendy Arundale, an employee who worked for Asda for 32 years, said: "I'm delighted that shop floor workers are one step closer to achieving equal pay.
"I loved my job, but knowing that male colleagues working in distribution centres were being paid more left a bitter taste in my mouth.
"It's not much to ask to be paid an equal wage for work of equal value, and I’m glad that Supreme Court reached the same conclusion as all the other courts."
Commenting on the ruling, Asda insisted that store jobs are not comparable to distribution centre jobs.
An Asda spokesperson said: "This ruling relates to one stage of a complex case that is likely to take several years to reach a conclusion.
"We are defending these claims because the pay in our stores and distribution centres is the same for colleagues doing the same jobs regardless of their gender.
"Retail and distribution are very different sectors with their own distinct skill sets and pay rates. Asda has always paid colleagues the market rate in these sectors and we remain confident in our case."
Shop floor workers, who are represented by law firm Leigh Day, have made sex-discrimination claims against the grocer.
They say store workers have historically got less because most shop workers are women, and most distribution depot staff are men.
Lawyers representing store workers say distribution depot workers get between £1.50 and £3.00 an hour more.
On Friday, Supreme Court justices were asked to consider whether Asda store workers are entitled to compare themselves to distribution staff for equal pay purposes.
The five Supreme Court Justices unanimously decided that, at a time when Parliament is determined to make equal pay law effective, now is not the time to take its "foot off the pedal".
In her judgment, Lady Arden said the case was "important because otherwise an employer could avoid equal pay claims by allocating certain groups of employees to separate sites so that they can have different terms even where this is discriminatory".
Lawyers said the ruling will have major implications for supermarkets, and other retailers.
Partner Lauren Lougheed, said: "We are delighted that our clients have cleared such a big hurdle in their fight for equal pay.
"Already an employment tribunal, the Employment Appeal Tribunal and the Court of Appeal ruled that these roles can be compared, and now the Supreme Court has come to the same conclusion.
"It's our hope that Asda will now stop dragging its heels and pay their staff what they are worth."
"Equal value" workers
In 2016, an employment tribunal decided that store workers were entitled to compare themselves to distribution staff - which triggered a case for a multi-million claim.
That decision was upheld by Court of Appeal judges in 2019. Asda bosses then appealed to the Supreme Court.
The Supreme Court hearing was Asda's final chance to argue the roles are not comparable.
The next stage will now involve an employment tribunal deciding whether specific store and distribution jobs are of “equal value”.
If judges decide that different jobs are of "equal value", the litigation would then enter a third stage.
Lawyers say an employment tribunal will then consider whether there are reasons – other than gender – why people working in stores should not get the same pay rates as people working in distribution centres.
Store workers bringing claims are members of the GMB union.
Susan Harris, GMB legal director, today said: "This is amazing news and a massive victory for Asda’s predominantly women shop floor workforce.
"We are proud to have supported our members in this litigation and helped them in their fight for pay justice.
"Asda has wasted money on lawyers' bills chasing a lost cause, losing appeal after appeal, while tens of thousands of retail workers remain out of pocket.
"We now call on ASDA to sit down with us to reach agreement on the back pay owed to our members – which could run to hundreds of millions of pounds."
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