Thousands of Asda staff could face the sack if they don't agree to a pay cut, the GMB Union has said.
The big four supermarket chain is considering ending a 60p supplement paid to some workers in the South East of England.
The supplement has been paid to these staff members for many years to make up for the higher costs of living near London.
However, Asda now says the extra payment is "out of line with the wider retail market".
The major chain also noted that it meant that some staff in stores close to each other are paid differently.
The Union that represents Asda staff claims that around 7,000 people from 39 different stores face a "fire and rehire" scenario reports Sky news.
The Union also claimed that staff will be threatened with dismissal if they refused to accept the cut.
Alongside this, GMB says that Asda is looking to reduce their worker's night supplement in November.
GMB Union spokesperson said: "Cutting staff pay during a cost of living crisis is shameful. And threatening them with fire and rehire tactics is inexcusable."
Asda has told the Mirror that it is still in consultations with staff across the 39 stores based outside the M25 about this and nothing had been decided yet.
The supermarket chain said the consultation was announced back in February alongside its announcements of a 10% wage increase for staff.
An Asda Spokesperson told the Mirror: “We are holding a collective consultation in a small number of stores outside the M25 where colleagues are currently paid a legacy location supplement of 60p per hour on top of their existing rate of £11.00 per hour.
"This supplement is out of line with the wider retail market and has created an anomaly where some Asda colleagues in stores that are close together are paid different rates.
"As part of this consultation, we are discussing a compensatory payment for colleagues in return for the removal of this location supplement, if the proposal goes ahead.
"These discussions are ongoing and no final decision has been taken.”
