Fears jobs and livelihoods will be “threatened” by a supermarket merger are to be passed on to a competition watchdog.
Redcar and Cleveland Council passed a motion on Thursday to “express concerns” over the proposed merger of Sainsbury’s and ASDA unveiled earlier this year.
Labour councillor David Walsh put forward the resolution outlining fears outlets “close together” in Middlesbrough, Skelton, Saltburn and South Bank were “at possible risk of disposal - threatening jobs and livelihoods”.
Cllr Walsh the meeting he drew up the motion after an early morning phone call from two women who worked at one of the stores.
He said: “The reality is that, despite the corporate gloss, it will be local shoppers that suffer and local workers that could have their jobs at risk.
“It remains to be seen if this supermarket sweep is the real deal or a bargain basement ready meal.”
Cllr Walsh also shared concerns about the impact the merger could have on dairy farmers, arable farmers, suppliers and staff.
On staff, he added: “They should not be traded in mergers and takeover bazaars without any say. We got rid of hiring fairs two centuries ago.”
But his motion did not pass without opposition.
Cllr Steve Turner, who spent 25 years working for one of the two supermarkets, branded statements in the motion “badly informed” - telling Cllr Walsh he “did not understand” the industry.
Cllr Turner said: “What you do not know and do not understand is it might actually benefit suppliers in our region.
“ASDA has a very strong track record of taking on suppliers - Jeff the Chef parmos is a great example of a product ASDA has been able to get - but Sainsbury’s, with their corporate view in London, has not.”
He added: “We should not have members spreading doom and gloom messages.”
But Cllr Josh Mason did not want to see the “biggest players” in the supermarket industry “abusing their position to create monopolies” before he backed the motion.
He added: “I will not let the best be the enemy of the good.”
Asda and Sainsbury’s revealed their £12bn merger plans earlier in May. If it goes ahead it will see the UK’s number two and three supermarkets create a supermarket titan bigger than Tesco with revenues of £51bn and a network of 2,800 Sainsbury’s, Asda and Argos stores.
However the proposals are being examined by the Competition and Markets Authority (CMA).
It is expected the watchdog will require the firms to sell some stores, however, it is thought those stores would be made to continue trading as part of any agreement.
Redcar and Cleveland Council passed the motion and its concerns will be passed on to the CMA.
ASDA and Sainburys did not wish to comment on the council’s motion.
A spokeswoman for the ASDA pointed to the original announcement on the merger saying “there are no planned Sainsbury’s or ASDA closures as a result of the combination”.
