Tesco is facing a class law suit in what is potentially the largest ever equal pay challenge in UK history, which could cost the supermarket giant £4bn to compensate workers for an apparent disparity between store workers and depot workers’ pay
Law firm Leigh Day says that employees working in the predominantly male dominated distribution centres are paid considerably more than the largely female staffed Tesco stores, and may earn in excess of £11 an hour whilst the most common grade for store staff sees them receive around £8 per hour.
This disparity could see a full time distribution worker on the same hours earning over £100 a week, or £5,000 a year, more than female based store staff.
The firm has announced that legal proceedings have already begun, with the first claims on behalf of their clients being submitted through ACAS, the first stage in the employment tribunal process. According to Leigh Day, the underpayment of workers could apply to in excess of 200,000 Tesco employees, with estimated pay shortfalls that could reach £20,000, putting the final bill for as high as £4bn.
The firm says it has already been approached by over 1000 employees and ex-employees of the supermarket. In June 2016 the employment tribunal found that lower paid female ASDA workers, also represented by Leigh Day, could compare themselves to higher paid men who work in ASDA's distribution centres.
Alongside the claim against Tesco, Leigh Day are currently representing over 20,000 shop-floor workers in equal pay claims against fellow supermarket giants Sainsbury's and ASDA, who both face similar claims of discrepancies in pay between the male dominated distribution centres and the mainly female staffed stores.
Paula Lee, the lawyer from the employment team at Leigh Day who is representing the Tesco women, said: ‘We believe an inherent bias has allowed store workers to be underpaid for many years.
‘In terms of equal worth to the company there really should be no argument that workers in stores, compared to those working in distribution centres, contribute at least equal value to the vast profits made by Tesco which last year had group sales of £49.9bn.’
A Tesco spokesman said: ‘We are unable to comment on a claim that we have not received.
‘Tesco has always been a place for people to get on in their career, regardless of their gender, background or education, and we work hard to make sure all our colleagues are paid fairly and equally for the jobs they do.’
Report by Pat Sweet
