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Tesco to increase minimum hourly rate for staff to £10.10 per hour

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Supermarket giant Tesco have announced what it describes as a “substantial increase in base pay” as it increases the minimum hourly rate paid to staff to £10.10 per hour.

The package agreed by the supermarket with union USDAW also sees an extension of its colleague discount allowance and new training and technology to upskill colleagues, giving them more flexibility in their work and potential to access more hours.

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The new pay deal for hourly-paid store and Customer Fulfilment Centre (CFC) colleagues will see their hourly rates increase 5.8% from £9.55 to £10.10, which will be effective from 24 July 2022.

For Customer Delivery Drivers, Tesco will be increasing the skills payment to £0.90 per hour effective from 1 May 2022 and aligning its Click & Collect Delivery Assistants to this skills payment, taking the total hourly rate for both to £11.00 from 24 July 2022.

Tesco’s Colleague Clubcard discount allowance will be increased by £500 taking the annual total allowance for all colleagues to £1,500 effective 1 April 2022. The supermarket says that this will allow its staff to do even more of their family shops at Tesco at 10% discount, increasing to 15% every payday weekend.

Jason Tarry, Tesco UK & ROI CEO said: “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.

“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.”

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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.”

(Lead image: Tesco)

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