International | United Kingdom

In 1999, the British company Asda was acquired by Wal-Mart and since then, it has skyrocketed to become Britain’s second largest supermarket. Asda is responsible for 40% of Wal-Mart’s international revenue. British citizens face similar problems with Asda that Americans do with Wal-Mart including frequent parking lot crime, store robbings, and decimation of small retailers. Asda and the British union, GMB, have been wrangling for over a year about unionizing Asda workers and the company was nearly crippled in June when workers went on strike and forced the company to negotiate with them.

OPERATIONS IN UNITED KINGDOM 

President and CEO of Asda: Andy Bond

Number of Associates: 164,018

Number of stores: 353

• Asda/Wal-Mart Supercenters: 29
• Asda Supercenters: 300
• George: 10
• Asda Living: 14

PUBLICATIONS

		Emerging Thinking U.K. Competition Commission

• The national minimum wage, which ranges from $6.47 to $10.49 (3.30 to 5.35 pounds) depending on the age of the employee, does not provide a decent standard of living for a worker and family.

• Government benefits include free universal access to the National Health Service.

• The law limits the workweek to 48 hours averaged over a 17- to 26-week period. Compulsory overtime is not prohibited, but must adhere to the 48 hour average.

• Law mandates a minimum of four weeks' paid annual leave, including eight national bank holidays.

• The average worker nationwide receives five weeks of paid annual leave plus eight bank holidays as part of collective agreements. An individual employee may agree through a contract to work overtime for premium pay.

• The government effectively implemented laws and policies to protect children from exploitation in the workplace.

• The law prohibits employment in any capacity of children under age 13. Those under age 16 are not permitted to work in an industrial enterprise.

• The law provides for the right of workers, except those in the armed forces, public sector security services, and police forces, to form and join unions.

• Approximately 26 percent of the workforce is unionized.

• Coverage is most widespread in the public sector, where almost 60 percent of workers were unionized. In contrast, 17 percent of private sector workers were unionized.

• Workers at Wal-Mart’s Asda accuse the company of bullying union supporters.

• The law allows unions to conduct their activities without interference, and the government protected this right in practice.

• Collective bargaining is protected in law and is freely practiced. Unions and management typically negotiate so-called collective agreements, less formal than collective bargaining contracts.

• Approximately 35 percent of the workforce is covered by collective agreements.

Source: U.S. Department of State, "United Kingdom: Country Report on Human Rights Practices," 6 March, 2007.

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