Pay - Retail: Union Secures 5.2% Pay Rise at Retail Giant

Following negotiations between retail trade union Usdaw and supermarket giant Tesco, staff pay will rise to £12.45 per hour in March and £12.64 in August across Tesco stores and fulfillment centers. London-based staff will see their wages increase to £13.66 in March, followed by £13.85 in August.

The deal, overwhelmingly endorsed by union representatives on the National Forum, ensures that Tesco hourly pay will surpass the Real Living Wage outside London and align with the new London Living Wage rates within the M25. Since 2022, Usdaw has secured over a 32% increase in the basic hourly rate for Tesco employees.

Additionally, the agreement includes improvements to company sick pay, night premiums, shift leader pay, and the colleague discount card. To bring Tesco in line with other retailers, Sunday premium payments will be phased out for those who still receive them, with affected employees receiving a one-off payment to safeguard their earnings.

Usdaw National Officer Daniel Adams praised the negotiations, stating: “It is a real achievement that through these discussions, union reps secured an above-inflation pay deal that builds on previous years' progress. This also ensures a meaningful gap between Tesco pay rates and the National Living Wage in April.”

Usdaw General Secretary Paddy Lillis welcomed the increase, saying: “Our members are key workers in the business, and it is only right they are fairly rewarded.”