Union bosses say a High Court ruling will prevent the use of ‘fire and rehire’ tactics at a distribution centre in Fradley.
The claim was brought by the Union of Shop Distributive and Allied Workers (Usdaw) with law firm Thompsons Solicitors against supermarket giant Tesco.
The case was brought on behalf of 42 workers from the company’s distribution centres in Fradley and Daventry.
The court noted that the staff had been given an entitlement to a specific ‘retained pay’ which could have been removed by firing and rehiring them.
Neil Todd, a trade union specialist at Thompsons Solicitors, said:
“This is a huge win for the workers and for Usdaw – the practice of firing and re-hiring staff on less favourable terms and conditions has been in widespread use over the last 18 months as employers try to erode rights that have been hard fought for and are there to protect some of the lowest paid in society.
“Tesco had made unequivocal commitments to its workers who had come into work throughout the lockdown, when it needed them most.
“The court agreed that, in those circumstances, it wasn’t then open to them to deploy fire and rehire tactics when it suited them.
“We are proud to have represented a trade union in taking on corporate giants who use fire and rehire tactics against the staff who had served them so loyally.”
Neil Todd, Thompsons Solicitors
Joanne McGuinness, Usdaw National Officer, said the staff had been assured the payment would remain in place when they were moved a number of years ago.
“In around 2007 Tesco was beginning a vital distribution expansion programme. To ensure that valued members of staff agreed to transfer location to new distribution sites, Tesco made assurances that those staff would retain the difference in their pay between their existing package and the new terms and conditions they would move to at those new sites.
“Importantly, they assured Usdaw that this would not be removed at a future date. Despite this, some 14 years later Tesco reneged on its promises and sought to buy out this retained pay and threatened its employees with dismissal if they did not sign up to a new contract without the retained pay element.
“Tesco refused to negotiate with Usdaw who were left with no option but to seek a legal solution so as to protect its members’ pay.
“Companies are more frequently resorting to using fire and rehire tactics when they want to reduce employees’ terms and conditions of employment.
“Rather than reaching an agreement with the employees or their union, they simply threaten the employees with termination of their contracts, leaving them with an impossible choice.”
Joanne McGuinness, USDAW
