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Britain’s Tesco agrees pay offer to avert depot strike

Published by maria gbaf

Posted on December 15, 2021

1 min read

· Last updated: January 28, 2026

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Tesco Secures Pay Deal to Avoid Christmas Depot Strikes

LONDON (Reuters) – Tesco has averted strike action by workers at nine distribution centres in the run-up to Christmas by agreeing a new pay deal with trade union Usdaw, Britain’s biggest retailer said on Tuesday.

“We’re pleased to have agreed a pay deal with Usdaw that it recommends to its members,” a Tesco spokesperson said.

“Colleagues at these centres will no longer be taking industrial action. We look forward to delivering a fantastic Christmas for customers.”

Usdaw said the planned industrial action in the week before Christmas Eve has been suspended, pending the result of a ballot on Tesco’s “much improved” pay offer.

Last week Tesco also agreed an improved pay offer for distribution worker members of the Unite union at four other UK sites. Unite also suspended strike action.

The Tesco disputes demonstrate the inflation-influenced wage pressure that might unsettle the Bank of England as it considers whether to become the world’s first big central bank to raise interest rates from pandemic lows.

(Reporting by James Davey; Editing by Kate Holton and David Goodman)

Key Takeaways

  • Tesco reaches a pay agreement with Usdaw to prevent strikes.
  • The deal affects nine distribution centres in the UK.
  • Industrial action was planned for the week before Christmas.
  • Unite union also suspended strikes after a pay offer.
  • The situation highlights inflation-driven wage pressures.

Frequently Asked Questions

What is the main topic?
The main topic is Tesco's agreement with Usdaw to prevent strikes at distribution centers by offering a new pay deal.
How many distribution centers are affected?
Nine distribution centers in the UK are affected by the pay deal.
Why is this pay deal significant?
The pay deal is significant as it prevents potential disruptions during the crucial Christmas period and highlights inflation-driven wage pressures.

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