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Tesco Avoids Pre-Christmas Strikes After Agreeing Pay Deal With Distribution Workers

Tesco has averted strike action by workers at nine of its distribution centres in the run-up to Christmas after agreeing a new pay deal.

The Usdaw trade union, which represents 5,000 workers at the sites, said it has secured a “much improved” pay offer from Tesco and will be balloting its members from today. Planned industrial action in the week before Christmas Eve has now been suspended, pending the result of the ballot.

Usdaw stated that full details of the pay offer would be shared later today when the ballot opens. Tesco had originally offered a 4% pay rise, which union leaders had suggested amounted to a pay cut due to current RPI inflation running at around 6%.

Joanne McGuinness, Usdaw National Officer, commented: “After the overwhelming vote in favour of industrial action, Tesco reopened pay negotiations with Usdaw. I am pleased to say that we have been successful in achieving a significantly improved offer and Usdaw is recommending that members accept it in the ballot.”

Last week, the Unite trade union suspended pre-Christmas strike action at four other Tesco distribution centres after the supermarket group made an improved pay offer comprising of a minimum of a 5.5% increase backdated to July 2021 and an additional 0.5% from February 2022.

“We’re pleased to have agreed a pay deal with Usdaw that it recommends to its members,” said a Tesco spokesperson.

“Colleagues at these centres will no longer be taking industrial action. We look forward to delivering a fantastic Christmas for customers.”

The unions had warned that the strikes would lead to shortages of some products at a time when supermarkets are already struggling to keep shelves stocked due to other supply chain issues.

NAM Implication:
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