Supermarket giant Tesco has said that its hourly pay for shop staff and warehouse workers will be increased by 5.8% from £9.55 to £10.10. The retailer, which is the UK’s largest private employer, said the pay increase will come into force from July 24.
It added that the new rate of pay is part of a £200 million investment by the company into its workers. This will also include an extension of the colleague discount allowance and new training.
The move has also been welcomed by a major union after it helped secure the deal for workers. Daniel Adams Usdaw National Officer said: “At such a difficult time, Usdaw is pleased to have secured a pay deal that not only delivers the highest hourly rate of pay in the sector but also delivers on the union’s New Deal for Workers campaign.
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“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. Tesco employees have worked through the pandemic helping to keep the nation fed in very difficult circumstances.
"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.”
The deal is another step forward for the union’s New Deal for Workers campaign, it added. Usdaw’s New Deal for Workers calls for:
- A minimum wage of at least £10 per hour for all workers immediately, ending rip-off youth rates and providing a living wage.
- Minimum contract of 16 hours per week, for everyone who wants it, that reflects normal hours worked and a ban on zero-hour contracts.
- Better sick pay for all workers, from day one, at average earnings.
- Protection at work – respect for shopworkers, abuse is not a part of the job.
- A proper social security system, Universal Credit does not provide a safety net.
- Job security, with day one employment rights for unfair dismissal and redundancy.
- Fair treatment and equality for all workers, including equal pay.
- A voice at work, stop rogue employers refusing to engage with trade unions and end ‘fire and rehire’.
Jason Tarry, chief executive officer of Tesco UK & ROI, said: “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. These investments in our colleagues are central to making Tesco what we truly want it to be: a great place to work for all, a place that attracts and retains the best talent in the industry.”
