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Asda's innovative move on agency workers

An interesting development this week as UK employers prepare for the introduction of new agency worker regulations next year.

Supermarket Asda has struck a deal with trade union Unite that will see thousands of temps working for its suppliers receive the same pay and rights as permanent employees.

Unite said 6,000 workers, who were mostly migrants, would win improved pay under the agreement, which covers 29 suppliers. Asda will now liaise with the suppliers, agencies that provide migrant workers and unions to raise the estimated £2.4m needed to ensure that temporary workers are on the same rates as their permanent colleagues.
Unite said the pay gap led to tensions in communities as permanent staff accused migrants of bringing down wages, while temporary workers felt aggrieved that they were underpaid for doing the same job as colleagues with contracts.

Other benefits that will be offered from the first day of employment include information about job vacancies where they are working, equal access to facilities such as childcare and transport, and rights for working mothers, such as time to attend ante-natal appointments and parent-friendly working hours.

The move follows an investigation by Asda into working conditions in the meat sector and comes ahead of a report by the Equality and Human Rights Commission into discrimination in the same sector.

Asda's decision goes further than required under the proposed agency worker regulations (subscription required) - as these temps are working for third party suppliers and not directly for Asda. But it shows that employers are thinking about ways to address the new legislation well in advance of its implementation in October 2011.

The move also puts pressure on other food retailers to follow suit, as well as scoring some good PR and a few corporate social responsibility brownie points.

Interestingly, the Recruitment and Employment Confederation, which represents employment agencies, has had its feathers ruffled by the development. A spokeswoman said: "The REC is disappointed that the investigation by Asda and Unite has taken place without the consultation of bodies that represent agencies in the supply chain, such as the Recruitment and Employment Confederation.

"We would encourage them to consult and involve all parties moving forward, to ensure that their proposals are workable in practice."

Will we see more employers being proactive ahead of the new regulations, as well as heaping pressure on agencies to come up with the cash to pay for these extra workplace rights?

XpertHR has a range of FAQs on employing agency workers.

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Mike Berry | |

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