Tesco, the largest retailer in the United Kingdom, will increase the hourly pay of about 220,000 store employees by 7% starting in April. The Bank of England, which is concerned about inflationary pressure in the economy, will likely pay attention to this increase.
According to a deal reached with the shopworkers union USDAW, the supermarket group, one of the largest private sector employers in the nation, will pay store employees 11.02 pounds ($13.25) per hour starting on April 2 instead of the current 10.30 pounds.
Workers in central and outer London will receive extra compensation.
Tesco reported that the increase, which will cost it over 230 million pounds and bring its investment in pay over the past year to 430 million pounds, will cost the company.
Asda, the third-ranked supermarket chain in Britain, announced a 10% pay increase for its employees on Friday. Sainsbury’s, the No. 2 retailer, declared an increase in January.
The BoE is closely observing pay agreements as it considers additional interest rate increases.
Post Your Comments