The Union of Shop, Distributive and Allied Workers (USDAW) says it will ballot its members across nine Tesco distribution sites, including two in Magor, south Wales, over what it says is a ‘much improved’ pay offer.
The new pay offer comes after the threat of a pre-Christmas strike by thousands of workers in two unions spooked the supermarket giant, where forecasted profits for 2021 are around £2.5billion.
Tesco are now offering a 5.5% pay rise backdated to July and a further 0.5% from the end of February 2022, taking the pay rise to 6%.
USDAW said that the strike had now been suspended whilst workers vote on the deal and the union is recommending they accept it.
The two ballots will involve drivers and warehouse workers at nine Tesco distribution centres in: Daventry Clothing, Goole, Hinckley, Lichfield, Livingston, Magor (both trunk and main sites), Peterborough and Southampton.
Tesco had previously offered just 4% to its drivers and warehouse workers, which resulted in an overwhelming vote by thousands of workers to reject the deal and strike.
Joanne McGuinness, Usdaw National Officer said, “The strength and solidarity of our members has secured a much improved pay deal.”
The Unite union were also involved in the same dispute but last week announced they were suspending action pending the result of a vote by their members at Tesco distribution centres in Antrim, Belfast, Didcot and Doncaster.
“Tesco’s improved offer shows what can be achieved by our members standing together. Given that the company has forecast profits for 2021 topping £2.5 billion an improved offer is the least Tesco workers could expect, ” said Unite general secretary Sharon Graham.
The new offer just about keeps up with the rising cost of living, and is just above the rate of CPI inflation at 5.1%, but falls below that of the RPI inflation rate which is running at 7.1%
The new offer, which is a third higher than the original one, will be a sign to workers that they are in a strong bargaining position at the moment, having delivered a 17% rise in profits this year for Tesco.
If the threat of strike forced a significant rise, some workers may also wonder if more could have been won with a four day walkout in the week up to Christmas, which would have put the issue of key workers and pay inequality at the centre of British politics. The USDAW ballot closes on the 22nd December, however, meaning that even if workers reject the deal, a pre-Christmas strike is now all but impossible.
But the improved offer comes on the back of workers at Stagecoach, Panasonic and elsewhere winning improved pay deals after strike action.
It also puts into sharp relief the below-inflation pay deals being offered to other workers, in particular key public sector workers, with NHS staff offered just 3% and local government workers offered just 1.75% on average. When the rising cost of living is taken into account, even on its lower measure, this amounts to a 2% and 3.25% pay cut respectively.
Both sets of workers are currently being balloted for strike action and given recent events, can be confident of winning improved deals if they take decisive action.
