Asda appears to be on the road to burying the hatchet in its ongoing disagreement with union leaders.
A meeting held yesterday between Asda’s chief executive Andy Bond and Paul Kenny, acting general secretary of the GMB, was described as positive.
A joint statement said: “The meeting today between us is the most progressive we've had. We both agree that we have made positive progress and today's meeting has been a significant step in the right direction.
“We have both agreed an action plan to work together to form a National Joint Council for distribution and are now going to develop the detail of this arrangement.
“The GMB has agreed to withdraw their plan to ballot colleagues for industrial action and ASDA expressed thanks for this gesture.
“We would both like to reinforce our commitment to working together.”
The union had been reported to be preparing to ballot thousands of its members in Asda’s 21 distribution depots around the UK in a dispute over national bargaining on pay and conditions as well as bonus pay. The balloting process was due to start on April 24.
Meanwhile the retailer has announced plans to create 25 new stores and 7,000 new jobs across the UK.
The first of the new stores is due to open in Fleetwood, Lancashire, next Monday.
It is also preparing to open the first of its new-style Asda Essentials stores, which will be a chain of discount shops stocking 95 per cent of Asda's own brands. The first Asda Essentials will open in Northampton at the end of March.
Judith McKenna, Asda's chief financial officer, said: "Our 2006 store and investment programme further demonstrates our commitment to flexible formats, mixed use and re-generation schemes, enabling us to create an increasing number of jobs across the UK."
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