Trade union Unite has suspended pre-Christmas strike action at four Tesco distribution centres after the supermarket group made an improved pay offer.
1,200 workers at the sites have now been offered a minimum of a 5.5% increase backdated to July 2021 and an additional 0.5% from February 2022. Tesco had originally offered a 4% pay rise, which union leaders said amounted to a “real-terms pay cut” due to current RPI inflation being higher at around 6%.
Unite general secretary Sharon Graham said the new pay agreement was the “least Tesco workers could expect”, given the supermarket has “forecast profits for 2021 topping £2.5bn”.
The union will now ballot its members on the offer and is recommending its acceptance.
Tesco had previously said its 4% offer was fair and one of the highest in the past 25 years. However, it said yesterday that it was “pleased” to agree on a deal amid warnings that the strikes could lead to shortages of some goods at a time when supermarkets are already struggling to keep shelves stocked due to supply chain issues.
Tesco is still facing pre-Christmas strikes at nine other depots after 5,000 workers represented by the union Usdaw rejected the proposed 4% annual pay rise. However, negotiators from both sides held talks yesterday and will meet again on Monday to try and resolve the dispute.
Asda is also facing the prospect of strikes at its distribution centres over what the GMB union described as the supermarket’s failure to make a meaningful pay offer amid “rampant” inflation. A ballot on industrial action opened this week and closes on 20 December.
NAM Implications:
- Wait for it…
- (i.e. the ripple-effect for Tesco and other mults…)
