Tesco supplies at risk from strike threat as retail giant plans to cut pay of distribution workers by thousands

Supermarket supplies could be at risk after a union warned of a potential strike ballot if Tesco does not withdraw plans to cut the pay of workers at the retail giant's Livingston distribution depot.

Lorries at the gates of the Tesco distribution centre at Deans, Livingston. Picture: Ian Rutherford

The Unite union said around 290 workers at the depot – which supplies all the company’s stores in Scotland – are being threatened with pay reductions of between £4,000 and £13,000. And if they don’t agree to the new contracts they risk being fired and rehired on worse terms.

The union pointed out Tesco’s profits soared by 29 per cent in the first half of last year, with pre-tax profits reaching £551 million, and sales in the UK and Ireland were up more than 8 per cent. Last October, Tesco faced widespread criticism following its decision to pay a £315m dividend to shareholders at a time when it was benefiting from business rates relief worth £249m.

Willie Thomson, Unite regional industrial officer, said members were shocked at the move.

"This is a group of essential workers who throughout this pandemic have kept the shops and shelves in Scotland stocked. At a time when the company is returning millions to its shareholders, workers are seeing significant pay cuts imposed on them. Potentially it could cost some of them their house because they won't be able to pay their bills as a result of this imposed change from an employer who doesn't need to do it.

"There's anger and quite a lot of disgust at the way they have been treated by Tesco. They feel this is a betrayal.”

Talks between the union and management are scheduled for next week. Mr Thomson said: “They know what needs to happen is a withdrawal of this threat to our members and I would hope the company would see sense and we can reach a negotiated way forward.”

Tesco said 467 out of 16,000 workers across its distribution centres received the retained pay.

A spokesman said: “A very small number of colleagues in our distribution network receive a supplement to their pay which was offered a number of years ago as an incentive to retain colleagues. Today, we have over 16,000 colleagues working in distribution, of which the vast majority do not receive this top-up, so we have taken the decision to phase it out.”

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