GMB criticises working conditions at ASOS, shares fall

asos
ASOS headquarters in London

Workers’ union GMB have criticised the way staff are treated at ASOS ahead of the retail giant’s latest set of results.

GMB, the union representing ASOS workers, called on the online fast-fashion retailer to respect its work force and employ some ‘basic fairness’ in the workplace. GMB and workers’ at ASOS’s Barnsley distribution centre have been running a campaign at the warehouse – the site of the old Grimethorpe colliery – since August 2015, after recent investigations by Buzzfeed and the BBC flagged up serious concerns over their working practices.

Iain Wright MP, Chair of the Business, Innovation and Skills select committee charged with leading the investigation into Sports Direct, has pledged to examine the claims. Neil Derrick, GMB’s Regional Secretary, said:

“We’re seeing a familiar story play out – massive profits for those at the top, made on the back of poor pay, terms and conditions for those making ‘fast fashion’ a reality.”

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“ASOS are quite literally coining it in while agency workers worry whether they’ll get enough hours next week to pay the bills. We’re simply asking ASOS to treat the people who keep their warehouses moving with a bit of respect – that can’t be too much to ask in the 21st century.  

The union is coupling work on the ground with a digital campaign calling on ASOS management to commit to treating workers with respect. 

“If ASOS bosses are serious about providing fashion with integrity – which is one of their slogans – then they can make sure their working conditions are fair, that wages and contracts mean people can live a decent life and that no one is subject to oppressive security and surveillance measures just for doing their jobs”, Derrick continued.

ASOS (LON:ASC) revealed a strong set of full-year results on Tuesday, disclosing a 26 percent increase in group revenue and a 37 percent rise in continuing profit. Sales were high across the board, with the US performing best – sales from the country’s site rose 50 percent across the full year.

However, shares plummeted over 7 percent as the results highlighted a 31 percent fall in pre-tax profit. Its shares are currently down 7.08 percent at 4,954.00 (1506GMT).

CEO Nick Beighton commented, “I’m pleased with progress in the business. The strength of these results reflects our unwavering focus on delivering great customer experience, supported by rigorous execution of our investments. We continue to target our growth opportunities, so we’re accelerating investment in both logistics and technology. The pace at ASOS is continuing in the new financial year, which we are looking forward to with confidence.”