Better News From Tesco As It Announces Pay Increase Of Up To 3.1% For Store Colleagues

by Benson Agoha | In Woolwich

Tesco may have had some troubles since its profit overstatement revelation, which has seen decrease in sales and share value, but Britain's biggest grocer now has positive news - at least for some of its staff.

Today, Tesco announced a pay increase of up to 3.1% for colleagues working in its stores across the UK.  It takes the hourly rate of pay for all established colleagues to £7.62 per hour.

* Matt Davies: (Credit: via Steve Smith, LinkedIn).

In a press release made available to Woolwich Online, Tesco said the two year deal includes an increase in the base rate of pay for all store colleagues.

The announcement means established colleagues will now receive significantly more than the Government’s new National Living Wage of £7.20 per hour, Tesco said.

And Tesco colleagues will continue to benefit from one of the highest pay and benefits packages in retail, which includes pension, colleague discount and a 5% turnaround bonus, Tesco said.

Working in agreement with workers Union Usdaw and colleagues representatives, Tesco said the pay increase will come into effect on 3 July 2016 and will apply to colleagues of all ages.

"As part of the package, Tesco has also introduced a simpler and fairer approach to premium payments. All colleagues will receive time and a half for Sunday and bank holiday shifts from July this year.

Any colleagues negatively impacted by the changes will be supported with a lump sum transition payment worth 18 months of the difference in pay.

Matt Davies, Tesco UK and ROI CEO said: “We’ve spent a lot of time working with Usdaw and colleague representatives to understand what’s important to colleagues. Together, we’ve agreed one of the highest pay and benefits packages in retail for store colleagues, and introduced a simpler and fairer pay structure, including one approach to premium payments."

“As well as an increase in pay which puts our hourly rate well above the Government’s National Living Wage, we remain absolutely committed to rewarding our colleagues with a pay and benefits package they really value, including a pension, colleague discount and 5% turnaround bonus.

“I’d like to thank colleagues for their customer focus, passion and hard work in serving our customers a little better every day.”