[UK] Tesco announces new pay rise for staff days after Asda hikes pay

Tesco has become the second UK supermarket in as many weeks to announce another staff pay hike, Manchester Evening News reports.

The retailer will increase pay for store workers by 7 per cent to a minimum of £11.02 per hour. It is the third wage increase over the past 10 months. The news followed Asda’s announcement that hourly-paid store workers would receive a 10 per cent pay increase earlier this month, with rates rising from £11 an hour in April and £11.11 in July.

Tesco currently employs about 340,000 staff. It said the increase in hourly pay from £10.30 an hour will represent an investment of more than £230 million. It will reportedly bring the retailer’s pay investment to a record £450 million over the past year after previous increases.

Tesco said the new minimum pay rate for store workers will take effect from April 2 to “reflect the increasing costs our colleagues are currently facing”. This latest pay increase - following discussions with the Usdaw union - will be on top of investment into free food for staff in store canteens, a salary advance scheme and a shopping discount of up to £1,500 a year.

Tesco will also reportedly increase its “additional skills payment” for shift leaders by an extra 40p to £2.26, as part of the pay deal, bringing their hourly rate to £13.28. 

Jason Tarry - Tesco UK & ROI CEO - said, “For the second year in a row, we have made a record single-year investment in base pay for our colleagues.

“We know that many colleagues have felt the pressure of rising costs this year, and we are absolutely committed to supporting them with competitive base pay and exclusive colleague benefits. This agreement recognises the incredible work and dedication our teams show every day in serving our customers.”

Daniel Adams - Usdaw national officer - said, “This deal, which follows earlier agreements with Usdaw on additional investment outside of the normal annual negotiations and bringing the 2023 pay negotiations forward, represents a significant step forward for pay within Tesco retail.

Source: Manchester Evening News

(Quotes via original reporting)

Tesco has become the second UK supermarket in as many weeks to announce another staff pay hike, Manchester Evening News reports.

The retailer will increase pay for store workers by 7 per cent to a minimum of £11.02 per hour. It is the third wage increase over the past 10 months. The news followed Asda’s announcement that hourly-paid store workers would receive a 10 per cent pay increase earlier this month, with rates rising from £11 an hour in April and £11.11 in July.

Tesco currently employs about 340,000 staff. It said the increase in hourly pay from £10.30 an hour will represent an investment of more than £230 million. It will reportedly bring the retailer’s pay investment to a record £450 million over the past year after previous increases.

Tesco said the new minimum pay rate for store workers will take effect from April 2 to “reflect the increasing costs our colleagues are currently facing”. This latest pay increase - following discussions with the Usdaw union - will be on top of investment into free food for staff in store canteens, a salary advance scheme and a shopping discount of up to £1,500 a year.

Tesco will also reportedly increase its “additional skills payment” for shift leaders by an extra 40p to £2.26, as part of the pay deal, bringing their hourly rate to £13.28. 

Jason Tarry - Tesco UK & ROI CEO - said, “For the second year in a row, we have made a record single-year investment in base pay for our colleagues.

“We know that many colleagues have felt the pressure of rising costs this year, and we are absolutely committed to supporting them with competitive base pay and exclusive colleague benefits. This agreement recognises the incredible work and dedication our teams show every day in serving our customers.”

Daniel Adams - Usdaw national officer - said, “This deal, which follows earlier agreements with Usdaw on additional investment outside of the normal annual negotiations and bringing the 2023 pay negotiations forward, represents a significant step forward for pay within Tesco retail.

Source: Manchester Evening News

(Quotes via original reporting)