Union's concerns for hundreds of jobs in Washington as Asda confirms delivery out-sourcing to DHL Derby plan

The GMB workers union has said over 300 jobs are potentially under threat after Asda has confirmed it plans to outsource its online George delivery service to a central DHL office in Derby - some 156 miles away from Washington.

The Washington Asda warehouse is one of three depots the supermarket giant currently runs the online distribution of its clothing label George from.

Under the plan, depots at Lymedale and Brackmills will also see their delivery service outsourced to a new central DHL hub in Derby.

The entrance to the Asda depot in Washington which currently handles online George deliveries.placeholder image
The entrance to the Asda depot in Washington which currently handles online George deliveries. | Neil Fatkin

The GMB said the plan could potentially impact on up to 1,200 employees across all three sites.

After being contacted by the Echo a spokesperson confirmed “the George.com delivery function (of the business) will be moved to Derby in full”.

GMB North East organiser Mark Wilson said: “The union and our members were informed about this plan on Tuesday (January 20). It came totally out of the blue. It’s something we didn’t expect and is obviously a big concern for our members.

“We believe there are around 363 people employed in the George online delivery service and whilst some may be redeployed, their jobs are clearly under threat.”

GMB North East organiser Mark Wilson.placeholder image
GMB North East organiser Mark Wilson. | GMB

Asda’s response to our first enquiry was to stress that no jobs are being cut and that all current roles roles within the consultation will move over via Transfer of Undertakings (TUPE) to DHL which will ensure protection of their existing pay rates, terms and conditions.

However, a spokesperson did later confirm the online George delivery service was being transferred in full to a DHL depot in Derby, with a partnership established with the delivery giant. The new depot would be 156 miles away from the current Washington site.

Mr Wilson said: “This clearly has implications for our members. Whilst there may be a few people willing to move to Derby as part of the out-sourcing, our representatives have not spoken to one member who is willing or able to move to Derby.”

When questioned about the practical implications of the plan on the workforce in Washington an Asda spokesperson said employees may not have to “necessarily” move to Derby and that once an employee of DHL, they “may seek alternative roles based closer to their current location”.

Asda said the proposed plan is due to a significant increase in demand for online George products which is expected to double again by 2032 and that current delivery depots are “not designed for this demand and all will reach full capacity within the next two years”.

David Lepley, Asda's Chief Supply Chain Officer, said: “This proposal supports the continued growth of our George.com business as we seek to achieve our ambition for George to become the UK’s largest clothing retailer by volume.

“The proposed change would begin in January 2027 and be completed later that year. Any colleagues who transfer will do so under TUPE regulations, which protect their existing pay, pension, and length of service.”

The GMB is now set to be involved in the consultation process over the planned move.

Mark said: “I can’t predict what is going to happen, and some people may be able to take up other roles within the North East, but clearly looking to redeploy 363 people is going to be very challenging.

“The GMB’s priority is and always will be to protect our members jobs and we will look to work with the business to get the best possible outcome for our members.”

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