Tesco Raises Wages of Store Workers as Cost-of-Living Crisis Continues

    Tesco Plc has decided to increase its staff wages after inflation hits the worst cost of living seen in decades in the U.K. 

    Increase in wage to counter inflation

    As per Bloomberg News, on Thursday, the biggest supermarket in the U.K. said that employees working in warehouses and stores would get an hourly wage of 10.10 pounds from July 24, an increase of 6% on the current rate. Truck drivers, who are a vital cog in the wheel in online grocery as increased orders ensure strong demand for them, will also receive an additional 90 pence hike taking their wages to 11 pounds an hour. 

    The enhanced pay will put Tesco on par with rivals Lidl and Aldi for paying the best hourly rates to employees of supermarkets who were designated as key workers by the British Government during the Pandemic

    Tesco is paying more than J Sainsbury Plc, its closest rival, which gives 10 pounds per hour to the worker. The second-largest Grocer in the U.K., Sainsbury Plc, faces demands from its shareholders, including HSBC Holdings, to give higher wages to all its employees. 

    As prices of food, fuel, and energy soar, consumers’ budgets get affected by the severe inflation in living costs, leading to a crisis among the supermarket employees in the U.K. who are the worst affected. 

    Two-fifths of the supermarket employees earn below the real living wage in the U.K., and increasing numbers are now taking assistance from food banks, as reported by the Independent Food Aid Network. 

    Tesco usually has a two-year pay deal with USDAW, the shop workers union. Still, they will review their wages again next year. The Grocer has also decided to give a minimum of 16 hours of work per week to all new hires and improve its store discount plans. It is also offering its existing employees an opportunity to increase their work hours. 

    As part of the new deal, Tesco will provide training for skill improvement that will equip the staff to work in all supermarket departments, from shelf stacking to checkout. This opportunity will allow the workers to potentially access and clock more hours. 

    The Grocery industry in Britain is one of the world’s most competitive, and it is changing rapidly with more people shopping online. Supermarkets are fighting increasing inflations as they struggle to keep prices low and invest more in online operations. 


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