Union wins Tesco 'fire and rehire' battle

Published On Sep 12, 2024, 6:43 AM

A Supreme Court ruling favored the Usdaw union in its legal battle against Tesco's plans to fire employees at distribution centers and rehire them at lower pay. The court determined that Tesco could not dismiss staff to reduce their salaries, stating that the 'retained pay' offered to employees was intended to be permanent. This judgment affects a small number of employees, but highlights the ongoing issue around 'fire and rehire' tactics used by employers to cut labor costs.

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The legal ruling may lead to a more favorable work environment for employees, potentially increasing labor costs for Tesco in the long run. If 'fire and rehire' practices are curtailed further by the government legislation as indicated by Labour's manifesto and actions, this could affect Tesco's operational flexibility. Investors may view this as a negative development for Tesco regarding its labor relations and overall cost structure.

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Union wins Tesco 'fire and rehire' battle

Sep 12, 2024, 6:43 AM

The row erupted when Tesco proposed firing staff at some distribution centres and rehiring them on lower pay.

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