Tesco sign

Some Tesco workers suspended their upcoming strike action on Wednesday after the supermarket made an improved pay offer to Unite-affiliated staff.

Tesco increased its previous offer of 4% to an immediate pay increase of 5.5% backdated to July 2021 plus a further hike of 0.5% in February 2022.

“Tesco’s improved offer shows what can be achieved by our members standing together,” said Sharon Graham, Unite’s general secretary. “Given that the company has forecast profits for 2021 topping £2.5 billion an improved offer is the least Tesco workers could expect.”

Unite also secured a guarantee of further talks for creating a single pay scale across all distribution centres.

Unite-affiliated staff at Didcot and Doncaster had planned to go on strike for 48 hours from 16 December and a further five days from 20 December. Staff in Livingston are to strike on 20 December while those in Northern Ireland plan to walk out on December 16.

Usdaw-affiliated workers at nine of Tesco’s 22 distribution centres have also voted for strike action from December 20 until Christmas Eve. Its talks with Tesco are ongoing.

A Tesco spokesperson said: “We’re pleased to have agreed a pay deal with Unite that it recommends to its members. Colleagues at these centres will no longer be taking industrial action. We look forward to delivering a fantastic Christmas for customers.”

 A Tesco warehouse worker told the Grocer this week that some colleagues were having to claim Universal Credit to make ends meet. “That’s unacceptable in the 21st century. Especially when you’re working for a multimillion-pound company,” the worker said.

Andrew Woolfenden, Tesco’s UK distribution and fulfilment director, previously told employees in a letter that going beyond a 4% rise “would not be sustainable and would prevent us from continuing to run the business efficiently”.

Asda is also facing the prospect of strike action after GMB balloted distribution workers in response to what it described as a “pay freeze”. A GMB spokesperson said “everyone’s doing it, so why not?”

An Asda spokesperson said the supermarket had previously responded to the driver shortage by offering all of its existing HGV drivers a £1,000 one-off discretionary incentive retention payment.

Tesco has been approached for comment.