SAINSBURY'S is unfairly penalising thousands of workers, according to shop workers' union Usdaw.

The Union of Shop, Distributive and Allied Workers claims Sainsbury's 2004 pay review imposes a pay freeze on workers who chose not to switch to a new pay structure introduced last year.

In contrast, workers who did switch have received a 2.5 per cent increase, according to the union, which has held urgent talks with Sainsbury's management.

However, Collin Chance, who runs the Sainsbury's store in Blackpole, Worcester, employing 260 people, and the store in Cathedral Plaza, Worcester, employing about 60 people, said the majority of workers had had a pay increase.

"More than 85 per cent of employees have had a 12 per cent pay rise," said Mr Chance.

"At this store there are only about nine people who have not received the pay increase - the union is only giving their version of the story."