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Retail

Union Hails Tesco Wage Increase As 'Major Step Forward'

Usdaw, the Union of Shop, Distributive and Allied Workers in the UK, has said that a pay increase for Tesco shop workers to £10.10 per hour (€12.10) as 'groundbreaking' and a 'major step forward'.

The retailer has announced that hourly-paid store and customer fulfilment centre workers will see their hourly rates rise 5.8% from £9.55 to £10.10, effective 24 July.

“As well as providing for a minimum rate of £10.10 for all staff, the deal gives members a right to request a ‘normal hours’ contract and ensures a minimum 16 hour contract for those that want it going forward," commented Daniel Adams, Usdaw national officer.

The deal also offers workers the right to request a 'normal hours' contract, as well as ensuring a minimum 16-hour contract for those that want it going forward.

'A Welcome Boost'

“Tesco employees have worked through the pandemic helping to keep the nation fed in very difficult circumstances," Adams added. "It’s absolutely right that they receive a decent pay award. This deal is both a welcome boost and testament to the value of employers working positively with trade unions.”

In a statement, Tesco said that the pay deal 'recognises the contribution our colleagues make to our business at a time when household budgets are under pressure'.

It says that the existing deal will last for one year, and pay terms will be reviewed alongside Usdaw in 2023.

“We are delighted to have reached an agreement with USDAW that recognises the vital role our colleagues play in our business now and in the future, giving them a well-deserved pay rise, more access to extra hours and setting out a long-term commitment and investment in their careers at Tesco," commented Jason Tarry, Tesco UK and Ireland chief executive.

Read More: 'The Worst Is Yet To Come' On Food Inflation, Tesco Chairman Warns

© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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