Tesco staff worker employee

Tesco has announced a new 5.8% pay deal for staff, along with major changes to their roles which will see them asked to work across different departments, including online picking.

Under the deal negotiated with the Usdaw union, the hourly rate for staff will increase 5.8% from £9.55 to £10.10 from 24 July .

The supermarket said it was making what it called the “biggest single-year investment in hourly store/CFC pay”, worth £200m, which also includes new money for training to upskill workers and an extension of Tesco colleague discount allowance.

Today’s announcement also includes a change in job roles with all B/C grade staff moving to a new job title of ‘Tesco colleague’ from October.

Tesco has told staff all colleagues will be trained to work on checkouts or self-service, pick online orders and replenish shelves, if applicable in their local store or CFC.

The move echoes changes made under new CEO Ken Murphy last year, which saw Tesco managers restructured so their roles included greater responsibilities for running different areas of its stores.

Tesco said staff would retain a “primary department” where they will work most of their contracted hours but would also be able to work across other departments if the store needs it. “This means a colleague currently working in a replenishment role will now be able to work in a range of different teams around the store, serving our customers or completing different duties within our CFCs,” it said.

Tesco said its new pay rate, which is a one-year rather than the standard two-year deal, meant that over the past 10 years its hourly rate of pay had increased by more than 40%.

The deal also includes increasing its staff Clubcard discount allowance by £500, taking the annual total allowance for all colleagues to £1,500 effective since 1 April 2022.

To empower the new flexible working, it said it would be launching a new online platform later this year where staff will be able to view their schedules, access training and development, and sign up to extra hours if they wish.

Tesco said it would allow more two-way communication, enabling staff to stay up to date with the latest information and share their views more easily.

“We are delighted to have reached an agreement with Usdaw that recognises the vital role our colleagues play in our business now and in the future, giving them a well-deserved pay rise, more access to extra hours and setting out a long-term commitment and investment in their careers at Tesco,” said Tesco UK & ROI CEO Jason Tarry.

“These investments in our colleagues are central to making Tesco what we truly want it to be: a great place to work for all. A place that attracts and retains the best talent in the industry.”

Daniel Adams, Usdaw national officer, said: “At such a difficult time, Usdaw is pleased to have secured a pay deal that not only delivers the highest hourly rate of pay in the sector but also delivers on the Union’s New Deal for Workers campaign – giving our members the right to request a ‘normal hours’ contract and ensuring a minimum 16-hour contract going forward.

“The pay deal is testament to the hard work of Usdaw members within Tesco throughout the last 12 months, and the commitment and dedication of our reps who were involved in negotiating the deal.”