Retail organisation Tesco will increase pay for hourly-paid store employees by 10.5% as part of a new pay deal, with the hourly rate set to reach £8.42 an hour by November 2018.
The pay rise will be implemented in three stages over the next two years. Pay will increase from £7.62 an hour to £8.02 an hour in November 2017, to £8.18 an hour in July 2018, and to £8.42 an hour in November 2018.
Premium payments for Sunday and bank holiday shifts will continue to be paid at time and a half until July 2018. After this, the rate for these shifts will decrease to time and a quarter. Any employees who will be negatively impacted as a result of this change will receive a lump sum transition payment in July 2018, worth 18 months of the difference in pay.
Under the new agreement, the established rate of pay will apply to employees after three months instead of the current nine-month policy. This will take effect from July 2017.
The pay deal also includes changes to the organisation’s maternity offering. From October 2017, eligible employees will be able to take an additional 14 weeks of maternity leave at half pay. This will enhance the maternity package from 14 weeks at full pay followed by 25 weeks at the statutory rate to 14 weeks at full pay, followed by 14 weeks at half pay, and then 11 weeks at the statutory rate.
In addition, the eligibility period for the maternity pay policy will reduce from two years’ service to one year of service from July 2018.
Tesco worked with trade union Usdaw and elected staff representatives to agree the pay deal.
Matt Davies, chief executive officer at Tesco UK, said: “This reward package sees our biggest investment in store pay for a decade, and gives [employees] a sustainable pay deal that rewards them for everything they do, while allowing us to also attract new talent.
“We also want to do all we can to help working parents and that’s why we are proud to offer a much improved maternity package to our [staff].”
Pauline Foulkes, national officer at Usdaw, added: “Tesco’s recent difficulties are a matter of public record and the staff have played a big part in helping turn the [organisation] around. Last year they received a one-off 5% bonus in recognition of that. So we are delighted to have negotiated a permanent substantial pay rise that averages over 5% a year for the next two years. We have managed to retain premium pay for Sunday and bank holiday working, despite a partial consolidation, even though most major retailers have now moved to a flat rate.
“This pay deal is a big step forward and shows that the [organisation] is prepared to invest in the staff to help grow the business.”
when will it be implemented? it is still being paid around 7. as they wrote here; http://www.job-application.co.uk/tesco-application.html
Hello, the lump sum that will be happening in july. Will i get anything as I use to work on a sunday up until March 2018 and I still do overtime too on Sundays.
Yeah a great deal considering Sainsbury’s are going to be getting £9.20 an hour from September. Tesco staff sold down the river by the union again……..
very disappointed by lack of communication ,basically none of of the 15% of Sunday Contracted workers will receive a pay out…taken for a ride! hope the company goes belly up! Just deserts…. leave the union ASAP…..They will sell their own Mother for a piece of silver (Steve Newman …hold your head up! )…. union not worth the paper they are written on …happy to take your money to fund their Jolly to Blackpool every year….. get out and save your premium!
Just found out I am not getting anything, losing over £100 per month been with Tesco 6 years wont make 7
Can i ask how you were informed ? Surely if you losing £100 a month you are entitled to a pay out…I still have not heard anything and i work almost every Sun & BH .
What shifts do you work and how did you find out?
Tesco are lying about giving their staff payouts for loss of money, a lot of people will be on less money for the next 4 to 5 months who work sundays. Tesco have used an underhanded way of calculating how much people will loose, basically they have done this so they don’t have to pay staff out. Maybe press should look into that. also know one in tesco will be getting near to 10.5% they keep talking about
I’ve basically had a pay cut not a pay rise
I did not receive the mentioned compensation they talking about. The 18 month lump-sum covering my losses due to Sunday rate decrease. Why? Anyone received anything?
Yeah i work Sundays and taking a pay cut until November and then i get a whopping 1% Increase definitely underhanded and dishonest way of doing things, should be investigated as they are discriminating against the employee’s contracted to work Sunday
Same. I’ve not received any kind of lump sum yet I’m currently over £60 pm worse off now. Not to mention the pay for the job I do is underpaid. Absolute joke. I’ve worked for this company for 17 years and now getting a pay cut! Shameful!
Lack of communication, asked at work no one knows nothing, I work night shift Saturday thru Sunday 10-7, Sunday thru to Monday 10-7, alot of us loss money and got no transition pay, I am atleast £60 each pay, how can they say that every colleague affected will be compensated, I have worked for tesco over 9 years. What is the point working these un sociable hours and not get paid for it?
I lose £80 a month…
I didn’t anything…
The union has sold us out to Tesco, ohh hang on the union is run by Tesco….
Not independent at all…