Tesco to increas pay rate for 250,000 workers by 10.5%

Tesco to increas pay rate for 250,000 workers by 10.5%

Tesco said it will hand around a quarter of a million staff a 10.5% pay rise, marking its biggest investment in store pay for 10 years.

Britain's biggest grocer will boost the hourly pay rate for 250,000 workers from £7.62 an hour to £8.42 by November 2018.

However, the firm will also cut pay for staff working Sunday and bank holidays, with wages shifting from time and a half to time and quarter from July 2018.

Matt Davies, chief executive of Tesco UK, said: "This reward package sees our biggest investment in store pay for a decade, and gives colleagues a sustainable pay deal that rewards them for everything they do, while allowing us to also attract new talent.

"We also want to do all we can to help working parents and that's why we are proud to offer a much improved maternity package to our colleagues."

The pay boost will be rolled out to workers in three stages, rising from £7.62 to £8.02 in November 2017, before climbing from £8.02 to £8.18 in July 2018, and finally stepping up from £8.18 to £8.42 in November 2018.

However, staff will earn an equivalent hourly rate of £9.52, once benefits are taken into account such as bonuses and pension payments.

Tesco said the pay rise, which was agreed after talks with the union Usdaw, will leave 97% of staff better off.

It added that staff working Sundays and bank holidays who are left worse off from the deal will be handed a lump sum on July 2018 to make up the difference for the next 18 months.

The move comes after Tesco announced on Wednesday that it would axe up to 1,100 jobs as part of plans to shut its call centre in Cardiff.

Tesco has more than 6,000 shops across the world, employing 460,000 staff.

More in this Section

Legislation to test self-driving cars on Irish roads approvedLegislation to test self-driving cars on Irish roads approved

Businessman who defrauded Revenue of €160k jailed for two yearsBusinessman who defrauded Revenue of €160k jailed for two years

Opec strikes deal with Russia to cut crude oil productionOpec strikes deal with Russia to cut crude oil production

Manchester United link up with Chinese company Alibaba GroupManchester United link up with Chinese company Alibaba Group


Lifestyle

Sating the festive appetite is what Christmas is all about, here Joe McNamee takes us through the best culinary delights that are produced right here on our doorstep.Want to give local this Christmas? Joe McNamee rounds up the the country's very best food produce

Architect and artist Harry Wallace tells Eve Kelliher how his style has evolved.How a lifetime as an architect has inspired Cork artist Harry Wallace

Don’t let present stress ruin your run-up to Christmas. Pat Fitzpatrick has done all the hard work with this tongue-in-cheek gift guide for every budget, so you can tick everyone off your list and get down to enjoying yourself for the festive season.Gift stressbuster: We sort out who gets what and why

It’s not what you have that makes you happy, it’s what you do. And what better time to be proactive than during the season of goodwill, says Margaret Jennings.Joy to the world: Strategies to increase your happiness during the season of goodwill

More From The Irish Examiner