Tesco has unveiled a £200m investment which will see Customer Fulfilment Centre (CFC) colleagues benefit from a 5.8% increase in hourly rates from £9.55 to £10.10, effective from 24 July 2022.
Tesco said the pay increase is the biggest single-year investment in hourly store/CFC pay in at least a decade, and this new rate means that the supermarket’s hourly rate of pay has increased by more than 40% over the last 10 years.
Additionally, Customer Delivery drivers will see a 90p increase in skills payment from 1 May 2022, taking the total hourly rate for delivery drivers and Click and Collect Delivery assistants to £11.00.
The announcement comes as Tesco has reached an agreement with the trade union USDAW which includes a new pay deal, increased access to extra hours, and investment in training to give colleagues more skills and flexibility.
The supermarket is increasing its Colleague Clubcard discount allowance by £500, taking the annual total allowance for all colleagues to £1,500, and it is increasing the colleague discount to 15% every payday weekend.
Tesco will also be launching a new online platform later this year where colleagues will be able to view their schedules, access training and development, and sign up to extra hours.
Meanwhile, given the “uncertainty in the economic environment”, this will be a one-year deal rather than two-year, and the retailer will review pay again with USDAW in 2023.
Tesco said this new deal recognises the contribution colleagues make to the business at a time when household budgets are under pressure. The changes have been agreed with USDAW as part of a wider investment in colleagues to support physical and mental wellbeing, both in and out of work.
Jason Tarry, Tesco UKand 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.”
Daniel Adams, USDAW national officer, added: “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.”