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Tesco Facing Supply Disruption After Distribution Workers Vote For Pre-Christmas Strikes

Tesco is facing the prospect of empty shelves in some of its stores in the run-up to Christmas after staff at four of its distribution centres voted to walk out unless they are offered a pay deal that keeps pace with inflation.

The workers, including warehouse staff and HGV drivers, are based at sites in Antrim, Belfast, Didcot and Doncaster. The pay dispute has seen Tesco offer them a 4% pay rise which the supermarket says was one of the highest awards made within its distribution business in the last 25 years.

However, the union Unite said the offer amounted to a “real-terms pay cut” due to current RPI inflation being higher at around 6%.

Unite general secretary Sharon Graham said: “Our members have gone above and beyond the call of duty to keep Tesco’s shelves filled throughout the pandemic. At the very least the UK’s largest and wealthiest retailer should be making our members a decent pay offer.”

She warned the strikes could lead to shortages of some goods at a time when supermarkets and other retailers are already struggling with supply chain issues.

If discussions to avert strike action aren’t successful, Unite revealed that Tesco’s Didcot and Doncaster sites will see an initial 48-hour stoppage beginning on 16 December. This will be followed by a further five-day pre-Christmas stoppage beginning on 20 December.

A further 48-hour stoppage is planned to begin on 30 December, with a three-day stoppage beginning on 5 January 2022 at Doncaster and Didcot.

Unite members at the Antrim and Belfast centres will begin an all-out continuous strike from 16 December.

Unite is also balloting its members for strike action at Tesco’s distribution centre in Livingston. That ballot closes today and could lead to those workers joining the strike action before Christmas.

Tesco is also facing disruption at a further nine warehouses, depending on the outcome of a separate vote on industrial action by the Usdaw shop workers’ union, which also closes today.

A Tesco spokesperson stated that customers could be confident it would fulfil its plans over the Christmas period.

“Our distribution colleagues have worked tirelessly through the pandemic in order to keep products moving for customers. The pay offer we have made is a fair recognition of this,” they said.

“We welcome the decision by our colleagues at the sites who have voted against industrial action. We are disappointed that some have voted to proceed, and we have contingency plans in place to help mitigate any impacts.”

Unite stressed that is Tesco could still avoid disruption in its stores by returning to the negotiating table and making a “greatly improved offer”.

NAM Implications:
  • ‘…current RPI inflation being higher at around 6%’ …will affect us all.
  • This Tesco ‘local’ dispute being but a symptom of a much bigger issue for 2022.
  • Any award greater than the 4% rise could have a knock-on across Tesco.
  • i.e. they have no option other than keeping the line, despite Christmas disruption…