Tesco has annonced that it would give a 5.8% pay increase to store and fulfilment centre workers in a pay settlement which will be reviewed again next year due to the uncertain economic environment and high cost of living.
The new pay deal takes the pay of the hourly-paid workers to £10.10 an hour from £9.55 previously, following agreement with the Union of Shop, Distributive and Allied Workers (USDAW), and will take effect from July 24.
“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,” said Jason Tarry, Tesco UK and Ireland CEO.
USDAW said that the pay deal gives Tesco workers the highest hourly rate of pay in the sector.
Daniel Adams – Usdaw National Officer says: “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.
“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.”
