Workers at Tesco distribution site in Staffordshire to be consulted on whether to move to industrial action ballot

Usdaw said its members at eight sites have overwhelmingly rejected a pay offer it said was worth between two per cent plus £500 and 4.4 per cent, depending on contract, along with some additional enhancements.

Eight sites affected include at Fradley Distribution Park in Lichfield. Others are at Hinckley, Magor, Southampton, Daventry Clothing, Goole, Livingston and Peterborough.

Mark Todd, Usdaw national officer, said: "Following the overwhelming rejection of Tesco's final offer, the company has made it clear that they do not intend to reconvene negotiations or make an improved offer at this stage.

"That means it is now necessary to carry out a consultative ballot, to assess our members' level of willingness to carry out industrial action."

A spokesperson for Tesco said: "We have made a fair pay offer to colleagues working at our distribution sites, which is equivalent to double the current rate of CPI inflation, and we continue to engage with Usdaw.

"In recent years we have made substantial investments in pay and benefits for our distribution colleagues, with pay increasing by 23% over the past three years."

The union will have to move to a ballot before any industrial action, so there is no immediate prospect of action or disruption to deliveries to Tesco stores.