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Tesco Slammed For Delaying Staff Pay Rises
https://www.whatjobs.com/news/united-kingdom/uk-employment-news/tesco-slammed-for-delaying-staff-pay-rises
By Nithya Bose in Business News, posted March 11, 2024
Tesco has faced backlash after delaying a promised pay increase for a month, leading to numerous staff being paid below the minimum wage.
The company announced it would raise the minimum wage for its retail staff from £11.02 to £12.02 starting 28 April.
This adjustment comes nearly a month after the national minimum wage for those aged 21 and over is set to rise to £11.44.
The delay aligns with HMRC regulations.
This allows companies to apply minimum wage increases from the beginning of the "pay reference period" following 1 April.
Tesco will instigate the rise on 28 April.
The Guardian reported the delay affects approximately 220,000 store employees.
It saves Tesco an estimated £17 million by postponing the wage increase until the end of the next month.
Usdaw union national officer Daniel Adams said: “Whilst we would have preferred that the company implemented this increase earlier, as Usdaw had originally requested, the regulations do allow them to make that decision.
“Usdaw has negotiated a significant pay rise that makes Tesco workers amongst the highest paid in the sector.
“While the union will always seek implementation on the pay anniversary date, which was 2 April last year, the outcome of these negotiations meant that the date was delayed until later in April to allow for the highest investment in pay possible.”
£300 million investment in staff pay
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A Tesco spokesperson told The Guardian: “We are investing over £300m in colleague pay, bringing our hourly rate to £12.02, which is significantly ahead of the national living wage, in a deal that has the full support of Usdaw.
“Our new rate is effective from our April pay period as set out in the HMRC guidelines, and we are fully compliant with all NLW requirements.
“We have a strong track record of making substantial investments in colleague pay and, since 2022, we have increased hourly pay by 26%, investing more than £750m in our colleagues.”
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