Tesco to lift shopworker wages by 5.2% but scrap extra Sunday pay
The UK’s largest supermarket group revealed on Monday that it will invest £180 million in relation to the pay increase.
Tesco has said it will lift pay for shop workers by more than 5% over the next six months after reaching a deal with unions.
However, it also revealed plans to axe the Sunday pay premium it currently gives many of its store workers.
The UK’s largest supermarket group revealed on Monday that it will invest £180 million in relation to the pay increase.
It has agreed with sector trade union Usdaw that it will increase the hourly rate of pay for store staff from £12.02 an hour to £12.45 from March 30.
It will then increase this again to £12.64 an hour from the end of August.
The fresh pay increase comes with the UK national minimum wage set to rise to £12.21 an hour on April 1.
The group said the two-stage increase represents an above-inflation rise of 5.2%.
Tesco store workers in London will see their pay rate increase from £13.15 per hour to £14.36 by the end of August.
In the new pay deal, the group will however drop the current 10% pay premium it gives store staff working shifts on Sundays. It had already stopped providing this for new starters.
Tesco said the move will put it in line with the other “big four” UK supermarket groups.
It will hand store staff impacted by this a one-off payment to cover the next 18 months as it phases out the pay premium.
Matthew Barnes, Tesco UK chief executive, said: “Our colleagues are our greatest asset, and this pay deal recognises the brilliant work they put in day-in, day-out to serve our customers.
“It also represents another significant investment in our colleague pay, which combined with our fantastic package of benefits, means Tesco continues to be a place to get on and thrive in a fulfilling and rewarding career.”
Daniel Adams, Usdaw national officer, said: “It is a real achievement that Usdaw reps have been able to secure an above-inflation pay deal that builds on the negotiations of the last few years.
“Not only does it ensure a meaningful gap between the Tesco rates of pay and the national living wage in April, but it also means that in August, the basic rate of pay in Tesco will exceed the real living wage rate outside of London and meet it within the M25.”
Shares in the company were weaker on Monday after bosses at rival Asda indicated the chain was planning to step up the grocery price war last week.
