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News Article

Sainsbury’s-ASDA Merger Could Force 2,500 People Out Of Work

May 17, 2018


Employees of both Sainsbury’s and ASDA will be worried about their job security, after news that the supermarkets are in talks to merge together.

Research conducted by the New Economics Foundation (NEF) showed that 2,500 positions in core supermarket supply chains are likely to be lost, despite Sainsbury’s ruling out rumours of store closures.

Instead, as the supermarkets are promising the union could result in cheaper prices for customers of up to ten per cent, this could have an impact on employment further down the chain.

Indeed, if the cut is passed on to suppliers of products and logistical services, they themselves may have to reduce the number of staff working for them.

Alfie Stirling, head of economics at the NEF, said: “We are likely to see a classic case of monopoly like power in a market where things are already heavily stacked towards the ‘big guys’.”

He stated this is a clear example of UK capitalism against small and medium-sized enterprises (SMES), as they are “repeatedly required to play second fiddle” despite making up 99 per cent of all British firms and more than half (60 per cent) of employment levels.

Indeed, Aldermore recently revealed 23 per cent of SMEs in Britain have lost out on business opportunities in the last 12 months. This is due to a lack of funding available, which has resulted in missing out on an extra income of £78,942 on average.

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