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Tesco to increase pay for warehouse staff

Tesco is increasing hourly rates by 5.8% from July for its customer fulfilment centres, after reaching an agreement with USDAW.

The new pay deal will also apply to store colleagues and will see staff in both areas of the business receive pay increases from £9.55 to £10.10. Tesco says that the move represents a £200 million investment in its colleagues and the biggest single-year investment in hourly store/CFC pay in at least a decade. It says that over the last 10 years, Tesco’s hourly rate of pay has increased by more than 40%.

For customer delivery drivers, Tesco will increase its skills payment to £0.90 per hour effective from 1 May 2022. Click and collect delivery assistants will also be aligned to the skills payment, taking the total hourly rate for both to £11.00 from 24 July 2022 when the hourly rate also takes effect.

Tesco said that the new deal was in recognition of the contribution that colleagues make to its business, particularly at a time when household budgets are under pressure. However, it warned that given the uncertainty in the economic environment, the move is a one-year, rather than two-year deal and will be reviewed again with USDAW in 2023.

In addition to the pay rise, Tesco is also making improvements to its total reward package. The Colleague Clubcard discount allowance has been increased by £500, taking the annual total allowance for all colleagues to £1,500 effective since 1 April 2022.

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.”

Daniel Adams, USDAW national officer, said: “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.”

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  • Tesco