Tesco is the biggest retail store in the UK and the largest private sector employer, Tesco employs 327,601 employees in the UK in 2017 (According to Statistics). The company has announced on Friday to raise staff salary by 10.5% over the next two years to combat inflation. “This reward scheme is the biggest we’ve made for a decade” said Matt Davies, Tesco UK CEO. Bank of England sees the rise in inflation over the next two years, Tesco has made this move earlier which might urge employers to pay higher wages when inflation start affecting the economy. The earlier indicators showed the fastest level of shrinking UK wages after the inflation.
The current hourly rate in the UK Tesco stores is 7.62 pounds per hour which makes it roughly $9.70 will see an increase to 8.42 pounds per hour by November 2018.
Tesco says average store worker at Tesco will receive almost 9.52 pounds an hour by November 2018 if we consider other benefits such as; pension and bonuses in monetary value.
Two days earlier this announcement, Tesco announced to shut down its store in Cardiff service center which incurred loss of roughly 1100 jobs in Cardiff. The announcement serves as tranquillizer to many especially for those who see company as only worried about their business and doesn’t make considerable investment in workers welfare.