The deal, overwhelmingly endorsed by union representatives on the National Forum, ensures Tesco hourly pay will exceed the Real Living Wage outside of London and continue to meet the new London Living Wage rates within the M25. This means that since 2022, Usdaw has secured increases in the basic hourly rate for Tesco members of over 32%.
In addition, the pay deal provides for improvements to company sick pay, night premium, shift leader pay and the colleague discount card. To bring Tesco in line with other retailers, Sunday premium payments will be removed for those colleagues that still receive them, with eligible colleagues receiving a one-off payment to protect their earnings.
Daniel Adams - Usdaw National Officer said: “It is a real achievement that through the negotiations, the union reps on the pay team were able to secure an above-inflation pay deal that builds on the negotiations of the last few years. It also ensures a meaningful gap between the Tesco rates of pay and the National Living Wage in April. In August, the second stage of the deal exceeds Real Living Wage rates outside of London and meets it within the M25. This, along with the other negotiated improvements, demonstrates the value of a modern and progressive relationship between independent trade unions and employers.”
Paddy Lillis, Usdaw general secretary, said: “Usdaw has a longstanding and valued relationship with Tesco, and we welcome the staff pay increase in line with and above the new Real Living Wage rates. Our members are key workers in the business and it is only right they are fairly rewarded with a living wage.”
Matthew Barnes, Chief Executive of Tesco, 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.”
Notes for editors:
Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on BlueSky @usdawunion.bsky.social and Twitter/X @UsdawUnion