The chair of a committee of MPs has accused Asda’s co-owner of “wasting” its time following a tempestuous evidence session over the supermarket chain’s fuel prices and employment practices.
Darren Jones hit out at Mohsin Issa and the company’s chief people officer Hayley Tatum following an often heated hour-long evidence hearing with the Business and Trade Committee.
He told them: “This has been quite an extraordinary session… you’ve not answered any of our questions.
“I’m just very sorry that we’ve spent an hour going round in circles and you’ve not been complying with the questions from this committee.
“It’s not in order and I think actually you’ve suffered to the detriment for the brand of Asda to your customers and your suppliers.”
Mr Issa, who was requested to give evidence in person to clarify perceived discrepancies in remarks given to the committee last month, defended its fuel price strategy from a damning report by the Competition and Markets Authority (CMA.
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2:47
CMA: Drivers paid extra for fuel in 2022
It had declared that drivers had been overcharged by the supermarket sector as a whole in the wake of a margin shift by Asda.
The CMA found that Asda’s pence per litre fuel margin targets were three times their 2019 level by 2023.
Mr Issa repeated the company’s position that there had been no change to its fuel strategy since the business was bought from Walmart in 2021.
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“We remain the price leader”, he told MPs but explained that, as part of that strategy, Asda had invested additional margin from its fuel offering to invest in food and other essentials.
He refused to separate the fuel business from the wider Asda empire, despite MPs declaring that drivers had paid an unfair premium to fill up.
The second half of the session was dominated by so-called fire-and-rehire and involved several MPs, with affiliations to the GMB union, hitting out at the company’s engagement with its staff.
Ms Tatum had described the practice – when an employee is told they will be let go unless they agree potentially weaker contract terms – as “dismiss and reengage” and insisted it was only a last resort.
The GMB, in May, claimed 7,000 workers had been threatened with the measure as part of discussions with the company over night shift payments that will see a premium payment removed, taking pay in to line across Asda.
“We don’t know whether we would end up in a fire and rehire position”, Ms Tatum said when she was asked to explain why ‘dismiss and reengage’ was an option amid continuing negotiations.
Mr Jones, clearly frustrated by answers to his own questions on topics including Asda’s ownership and tax structure, said he reserved the right to recall both Mr Issa and Ms Tatum to give further evidence in future.
The supermarket sector as a whole faces further regulatory scrutiny on Thursday when the CMA is due to update on its investigation into grocery prices.
It has been looking into suggestions that chains – and other parts of the supply chain – have been making excessive profits.
English water companies have collectively been given the lowest environmental rating by the Environment Agency (EA) since records began.
Companies were ranked on a scale of one to four stars. Out of a maximum score of 36 stars for all nine companies, the firms together scored 19, the lowest since the EA began monitoring.
The only utility to receive the highest four-star rank was Severn Trent, the agency said in its annual performance assessment.
The number of serious incidents, in which “significant” environmental harm was caused, increased by 60% last year compared to 2023.
Just three companies were responsible for the vast majority of incidents.
Thames Water – the country’s biggest supplier – Southern Water and Yorkshire Water were responsible for 81% of all incidents.
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Only two firms out of nine – Northumbrian Water and Wessex Water – recorded no serious incidents.
More monitoring, inspections and data have meant that knowledge of pollution in English waterways is now greater than ever. In turn, the amount of reporting has been greater.
Other factors driving the figures are underinvestment and poor maintenance of infrastructure, as well as wet and stormy weather.
Firms have again been called on by the Environment Agency to “urgently” improve their performance. There had previously been a trend of improvement since records began in 2011, but the latest figures indicated a “dip”.
In addition to pollution incidents, companies were assessed on self-reporting and compliance with permits.
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Is Thames Water a step closer to nationalisation?
A separate report by water regulator Ofwat published on Thursday showed “mixed” performance with improvements in sewer flooding and pipe leakage, but only two companies reported a reduction in pollution incidents over five years.
Regulation of the sector has been criticised in a once-in-a-generation review of the water industry by career civil servant Sir Jon Cunliffe. In the wake of it, the government says Ofwat is to be retired.
Pressure has mounted on utilities across the UK as the public has sought action on poor water quality and rising bills.
An autistic man who was told he could no longer stack shelves at Waitrose when he asked to be paid has been offered a job by Asda.
Tom Boyd, 28, began volunteering unpaid at the branch of WaitroseinCheadle Hulme, Greater Manchester, in 2021, supported by a care worker, to develop skills for the workplace on a further education course he was taking.
The work gave him a sense of “purpose and belonging”, his mother, Frances Boyd, told the BBC.
When she asked in July if he could be paid for a few hours every week, however, the supermarket’s head office told him he had to stop and could not return to the shop.
Ms Boyd said they felt “deeply let down” by the decision as he had taken great pride in his work, which included putting out stock and tidying the shelves.
“If I went in and saw him, he was smiling, and it gave him independence, a sense of purpose and belonging,” she said.
“He gave over 600 hours of his time purely because he wanted to belong, contribute, and make a difference…
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“He deserved better. He deserved kindness, respect and the chance for all his hard work to mean something.”
Mr Boyd has now been offered two paid five-hour shifts each week by Asda.
“It’s overwhelming and they are flexible to say if at any time he is struggling they are fine,” his mother said.
Welcoming the news on X, Greater Manchester mayor Andy Burnham said he hoped it would lead to more employers accepting a neurodivergent code of best practice he has launched.
An Asda spokesperson said that when the store heard about Mr Boyd’s desire to find meaningful work they knew he would be a “fantastic fit” and were delighted to offer him a role.
“We know that finding meaningful work can be especially challenging for individuals with learning disabilities or difficulties,” they said.
“Asda has a Supported Internship Programme and partnership with DFN Project SEARCH, through which we have welcomed over 30 talented new colleagues into roles across our stores. We have seen the positive impact this has for the individuals who join and for our colleagues and customers too.”
A Waitrose spokesperson said they “care deeply” about helping people into the workplace who might not otherwise be given a chance and that the chain is currently investigating what happened to Mr Boyd.
“We’d like to welcome Tom back, in paid employment, and are seeking support from his family and the charity to do so. We hope to see him back with us very soon,” they added.
US sanctions against Russia’s two largest energy companies, the state-owned Rosneft and privately held Lukoil, are perhaps the most significant economic measures imposed by the West since the invasion of Ukraine.
If fully implemented, they have the potential to significantly choke off the flow of fossil fuel revenue that funds Russia’s war machine, but their power lies not in directly denying Russia access to the tankers, ports and refineries that make the oil trade turn, but the US financial system that greases the wheels.
Ever since the invasion, the Russian government has proved masterful at evading sanctions, aided and abetted by allies of economic convenience and an oil industry with decades of experience.
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2:58
New US sanctions on Russia: What do we know?
While the West, principally the EU, has largely turned off the taps and stopped buying Russian oil, China, India and Turkey became the largest consumers, with a shadow fleet of tankers ensuring exports continued to flow.
Data from the Centre for Research into Energy and Clean Air (CREA) shows that while fossil fuel revenues have fallen from more than €1bn a day before the war, they have remained above €600m since the start of 2023, only dipping towards €500m in the last month.
None of that oil has been heading for the US, but these sanctions will directly impact the ability of the Russian companies, and anyone doing business with them, to operate within America’s financial orbit.
According to the order from the US Office for Foreign Asset Control, the sanctions block all assets of the two companies, their subsidiaries and a number of named individuals, as well as preventing US citizens or financial institutions from doing business with them.
It also threatens foreign financial institutions that “facilitate transactions… involving Russia’s military-industrial base” with direct or secondary sanctions.
Image: Vladimir Putin chairs a meeting in Moscow.
Pic: Sputnik/Reuters
In practice, the measures should prevent the two companies from accessing not just dollars, but trading markets, insurance and other services with any financial connection to the US.
Taken in harness with similar steps announced by the UK earlier this month, analysts believe they can have a genuinely chilling effect on the market for Russian oil and gas.
Russia’s customers for oil in China, India and Turkey will also be affected, with the largest companies, state-owned and private, expected to be unwilling to take the risk of engaging directly with sanctioned entities.
Indian companies are already reported to be “recalibrating” their imports following the announcement, which came just a week after Donald Trump announced an additional 25% import tariff on Indian goods as punishment for the country’s reliance on Russian oil.
That does not mean that Russian oil and gas exports will cease. There are other unsanctioned Russian energy companies that can still trade, and ever since the first barrel of oil was tapped, the industry has proved adept at evading sanctions intended to interrupt its flow from one country or another.
Any significant increase in the oil price beyond the 5% seen in the aftermath of the announcement could also put pressure on the White House, which is at least as sensitive to fuel prices at home as it is to foreign wars.
But analysts Kpler expect the sanctions to cause “an immediate, short-term hiatus in Russian crude exports, as it will take time for sellers to reorganise and rebuild their trading systems to circumvent restrictions and ease buyers’ concerns”.
And Russian gas will, for now, continue to flow into Europe, where distaste for Vladimir Putin‘s imperial ambitions has not killed the appetite for his fuel. While the EU has this week imposed sanctions on liquified natural gas (LNG), they will not be fully enforced until 2027.