21 June 2005

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We will not close the Washington depot, Asda Wal-Mart says to UNI Commerce - but 315 workers may still have to go

ASDA - the British subsidiary of Wal-Mart - say to UNI Commerce that they do not intend to close their depot in Washington. But over 300 workers may still lose their jobs, the company contends.

GMB, the union that represent the distribution centre workers says on its website that "there is a separate dispute at ASDA Washington (ADC) regarding the closure of a depot and the possible redundancy of over 300 jobs".

Only part of the distribution centre will be closed

Nick Agarwal, ASDA's General Manager for Public Relations says to UNI Commerce that "on 1st June we briefed colleagues to changes at one of our two Washington depots - the "Ambient Distribution Centre" - not the RDC - on the Pattinson Industrial Estate."

"We said we planned to issue "At Risk of Redundancy Notices" to 315 colleagues at the ADC. Please note that these are NOT redundancy notices - we'll work flat out to find these colleagues new roles in our business. We have a a tremendous track record in finding new roles for people affected in this way. There is over 90 days of consultation with our colleagues before any final decision is taken", Mr Agarwal writes.

"The depot looks after "ambient" medium and slow moving food lines. It currently serves 100 stores but as part of a re-configuration of our network that we've been on with for a couple of years, that will reduce to around 35 stores in the next 18 months. It currently handles 1m cases a week which will halve under our network migration plans. We've been moving to a "hub and spoke" system over the past two years, managing our distribution network more efficiently and in line with the change in the number and locations of stores."

A broader dispute is building up

The threatening redundancies in Washington are only part of a dispute that is building up between ASDA and its workers, represented by GMB. The union's website regrets that the situation has now come to this:

- Having exhausted all negotiation procedures Michael Hopper, Regional Organiser for the GMB said, "It is unfortunate that we have reached the stage where members feel there is no alternative but to resort to industrial action in this matter; although we are always willing and available to discuss the issues involved with a view to avoiding industrial action."