TESCO, who have 2,620 stores throughout the UK and 14 within the Herald’s coverage area, are to slash wages for many employees by the time they receive their next pay cheques, which is hidden by a blanket increase to wages nationally, staff say.

The Herald was contacted by a current employee of the retail giant who found out about the cuts earlier this year after working for the company over the last two decades.

They explained that although across the board staff are to receive very slightly higher wages, those who work unsociable hours and Sunday shifts will be detrimentally effected.

THE CUTS

The cuts will come in the form of bonus reductions; staff will no longer receive double time for Sundays and Bank Holidays, and those working night shifts and overtime hours will no longer receive the same increases, with some staff claiming they’ve been told overtime will be paid at the standard hourly rate.

On Sundays and Bank Holidays, the formerly doubled pay will be reduced to just time and a half, a reduction of 25%.

The employee who contacted The Herald notified us that they thought the increases to staff wages were only being implemented to mask the reductions which the retailer is making, to allow the national media to hide that staff are going to suffer from the changes.

THE INCREASE

Nearly a quarter of a million Tesco store staff will receive a 3.1% increase in basic pay this year under a new ‘deal’ that includes the cuts to holiday and night-time bonuses.

Established staff at Tesco will qualify for the increase and will get £7.62 an hour starting from July, some 42p over the £7.20 minimum wage for over-25s.

New employees to the company will see their pay rise £7.20 to £7.24 in July, which was increased from £7.04 to fall in-line with the national minimum earlier this year.

SOFTEN THE BLOW WITH A PAY-OUT

The Herald was told that as a sweetener, employees who were to be most affected by the bonus changes would be receiving a sum of money to make up the difference for a short period of time.

We were told that compared with the length of time they and others had been at the company and how long they intended to stay, the payment for the short period was not good enough.

Tesco have said that 85% of staff would be better off under the pay deal and that those who had been negatively affected would be handed a lump-sum payment worth 18-months of the difference in pay.

HOW DOES THE RETAILER’S PAY COMPARE?

Online statistics show that Tesco’s pay increase will put them above Sainsbury’s and Asda who currently pay national minimum wage (£7.20), but compared with companies like Lidl, Aldi and Morrison’s all of whom offer around £8/hour, the retailer falls short.

Matt Davies, the chief executive of Tesco in the UK and the Republic of Ireland, said: “We’ve spent a lot of time working with [trade union] Usdaw and colleague representatives to understand what’s important to colleagues.

“Together, we have agreed one of the highest pay and benefits packages in retail for store colleagues, and introduced a simpler and fairer pay structure, including one approach to premium payments.

“As well as an increase in pay, which puts our hourly rate well above the government’s national living wage, we remain absolutely committed to rewarding our colleagues with a pay and benefits package they really value, including a pension, colleague discount and 5% turnaround bonus.”

Pauline Foulkes, a national officer at Usdaw, said the total package for Tesco staff, including a 5% turnaround bonus that employees are on track to receive this year, was well ahead of the living wage and was one of the best in retail: “We believe the deal is the best that could be achieved in the circumstances and represents a significant investment in pay and benefits.”