Tesco invests in colleagues with over 10% pay deal across two years
10 June 2019
Tesco has today announced a significant new pay deal for hourly-paid store and Customer Fulfilment Centre (CFC) colleagues which will see their hourly rates increase by 10.45% to £9.30 by October 2020.
Colleagues will see their pay increase over two stages: firstly from 1 September 2019 pay will increase by 6.9% from £8.42 to £9.00, then on 4 October 2020 pay will increase again by 3.3% to £9.30.
The pay deal has been developed in partnership with Usdaw and elected colleague representatives. The retailer has focused on what its colleagues have said is most important to them – a guaranteed and higher basic hourly rate.
As well as a significant investment by Tesco into the pay deal, it has also been agreed with Usdaw that Tesco will replace the Colleague Bonus Plan permanently with this higher basic hourly rate, providing more certainty for hourly-paid store and CFC colleagues in their take-home pay.
Bucking the trend across the retail sector, Tesco will also continue to offer premium payments, time and a quarter, for Sunday and all bank holiday shifts.
Jason Tarry, Tesco UK CEO, said: "We are delighted we have been able to offer our colleagues a pay increase of over 10%, despite the significant economic challenges and uncertain times many retailers are currently facing. Together with our other colleague benefits, it makes our total reward package more competitive than ever before.”