Union secures 7% pay rise for 220,000 Tesco staff
Retail trade union Usdaw has negotiated a pay deal with Tesco which will see staff receive a 7% pay rise. Around 220,000 workers in stores and fulfilment centres are set to benefit from the rise.
The deal will see the hourly pay of staff increase by 72p per hour, up to £11.02. The new rate will come into effect on 2 April 2023. This comes on top of the increases secured since July 2022 to support staff facing the brunt of the cost of living crisis. As a result of these agreements, base pay will have increased by nearly 15.5% over the course of 10 months.
The new pay rates will apply to staff of all ages, and will see workers paid above the Real Living Wage outside of London of £10.90 per hour. All staff in London Borough stores will be paid at least the Real Living Wage for London of £11.95, with a London Allowance being established.
Daniel Adams, Usdaw National Officer welcomed the agreement. He said: “This deal, which follows earlier agreements with Usdaw on additional investment outside of the normal annual negotiations and bringing the 2023 pay negotiations forward, represents a significant step forward for pay within Tesco retail. It represents a third increase in pay in 10 months and ensures that the business continues to respond positively to the significant pressures our members face. Furthermore, it demonstrates the value of employers engaging constructively with trade unions at this incredibly difficult time.”
Jason Tarry, Tesco UK & ROI CEO said: “For the second year in a row, we have made a record single-year investment in base pay for our colleagues. We know that many colleagues have felt the pressure of rising costs this year and we are absolutely committed to supporting them with competitive base pay and exclusive colleague benefits. This agreement recognises the incredible work and dedication our teams show every day in serving our customers.”
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Image credit: Tesco PLC – Creative Commons
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