Britain's Tesco boosts hourly pay to 13.28 pounds

Tesco has agreed with union USDAW to raise the hourly pay rate for store and online fulfillment staff to £13.28 an hour effective March 29. The deal improves labour relations and pay for frontline workers while imposing incremental labour cost pressure on Britain's largest food retailer; the direct financial impact on margins was not disclosed and is likely modest.

Analysis

Tesco has agreed with union USDAW to raise the hourly pay rate for store and online fulfillment staff to £13.28 an hour effective March 29. The deal improves labour relations and pay for frontline workers while imposing incremental labour cost pressure on Britain's largest food retailer; the direct financial impact on margins was not disclosed and is likely modest.