Usdaw negotiates a 10.5% pay rise at Tesco as the company sees an upturn in profitability

Date: 23 June 2017 Usdaw has negotiated a significant pay rise for all retail staff in Tesco, taking the basic hourly rate to £8.42 over the next two years.

The deal includes improvements to maternity and new starters pay and a partial consolidation of premium pay into the hourly rate. Staff are being briefed about the details today and the first stage of the pay increase will be paid from November.

Pauline Foulkes - Usdaw National Officer says: “Tesco’s recent difficulties are a matter of public record and the staff have played a big part in helping turn the company around. Last year they received a one-off 5% bonus in recognition of that. So we are delighted to have negotiated a permanent substantial pay rise that averages over 5% a year for the next two years. We have managed to retain premium pay for Sunday and bank holiday working, despite a partial consolidation, even though most major retailers have now moved to a flat rate.

“This pay deal is a big step forward and shows that the company is prepared to invest in the staff to help grow the business.”

Notes for editors:

Usdaw (Union of Shop, Distributive and Allied Workers) is the UK's fourth biggest trade union with nearly 430,000 members. Membership has increased by more than 17% in the last five years and by nearly a third in the last decade. Most Usdaw members work in the retail sector, but the Union also has many members in transport, distribution, food manufacturing, chemicals and other trades.

For Usdaw press releases visit: www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion

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The official website of the Union of Shop, Distributive and Allied Workers