Hundreds of Tesco staff in Wales are considering industrial action after the company suggested they take a pay cut when their distribution centre is relocated.
In January, Tesco revealed plans to close its distribution centre in Chepstow and move almost 750 employees to new premises at Pilning, nine miles away. Many of the centre’s workforce received offers of employment that would see their salary drop from £21,000 to £18,000 over the next four years.
Juliette Bishop, Tesco corporate affairs manager, told the Western Mail: “In January, we announced our plans to replace our distribution centre at Chepstow with a new facility just under nine miles away. All existing staff were offered the opportunity to work at our new site.
“Since announcing our plans we have been in ongoing discussions with our staff and their trade union representatives. Staff have recently voted to reject the [new pay] package on offer, and we are obviously disappointed, but will be meeting with union representatives in the coming weeks to listen to and discuss the feedback from staff.”
Labour councillor Armand Watts expressed his anger at the proposals.
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“The only offer to be put before the workers would mean a significant loss in the standard of living for many local families whose main breadwinner works at the distribution centre,” he said.
Earlier this week, Tesco announced its first quarter sales rose 4.3% in a “solid start” to its trading year.
