Tesco distribution
Union concerns about Tesco’s use of agency workers in its distribution network are being addressed through a joint union/company working party set up last year. Early gains for this approach have included recognition agreements for the USDAW union with the warehousing agencies but also a reduction in the number of agencies used. There are plans to “shrink” the number of agency workers and examine more flexible working arrangements. Practical issues like induction training and English language testing are also being tackled. However, there are still concerns, highlighted by the Unite trade union, over the use of agency workers in Tesco’s “third party” distribution operations as well as its meat supply chain.
Employer
Tesco, the UK’s biggest retail chain, currently has its own network of 24 UK distribution depots. These include a depot and separate trunking station at Middlewich in Cheshire. The company also makes use of ‘third party’ distribution sites such as the one at Middleton operated by Wincanton.
Unions
USDAW has a series of collective bargaining agreements covering Tesco distribution depots across the country. Some of these are national in scope (covering groups of depots) while some are local. Unite also has collective agreements covering drivers at a number of sites.
In the North West staff at the Middlewich depot are covered by one of USDAW’s national agreements (the “Blue Book”) while the trunking station is covered by another (the “New Sites” agreement). Unite represents drivers at Middlewich (who were transferred to haulier Eddie Stobart in February 2008) and at the Wincanton site in Middleton.
Workforce
There are around 12,000 staff employed in Tesco Distribution.
Agency workers
USDAW raised concerns about the use of agency workers through its national negotiating machinery. It initially highlighted the impact of agency labour on potential overtime available to warehouse staff and drivers (overtime traditionally contributes significantly to earnings in the road transport sector) but a range of other issues relevant to agency workers, including health and safety concerns and the need for permanent positions, are also being addressed. Concerns about the use of agency workers by contractors and suppliers working for Tesco have also been separately identified by Unite (see below).
Working party
The company recognised concerns raised by USDAW and committed itself in 2008 to working jointly with the union to develop national guidelines around the use of agency labour. A joint working party of union and company representatives was set up including people from the different USDAW bargaining groups around the country. It had already begun to make progress on its agenda at the time that this report was drawn up.
The first step taken was agreement at the working party on its frames of reference and future work. The agreed focus will be on plans both for the warehouse and transport sides of the operation. It will look at practical questions like English testing and induction training, as well as the level of agency usage. Local agreements, a more flexible contract and the implications of the Temporary Agency Workers’ Directive will also be looked at.
The future work of the working party is expected to include a discussion of new flexible contract terms; the possible trial of a new contract; monitoring of legislation and its potential implications; and discussion of a Tesco “staff bank”.
Although this is “work in progress” a number of gains have already been registered by USDAW. These include recognition agreements between USDAW and warehouse agencies, a reduction in the number of warehouse agencies used, an “Agency Shrink Plan” in transport, and English testing standards. USDAW points out that some “myths” have been challenged, but the joint approach has also helped develop an understanding of the business need for flexibility, and also how contracts for employees can be improved.
Concerns
While the joint working party with USDAW shows that progress can be made through collective bargaining, Tesco’s indirect reliance on agency workers is still a cause for union concern.
Unite is campaigning against “harsh and divisive” conditions at companies in the supply chain that produces meat for Tesco stores: “In many cases a permanent two-tier workforce has been created, one where mainly migrant agency workers are on even lower pay and worse conditions than the directly employed workers”.
The union is also concerned at a high level of agency use at the Wincanton distribution site in Middleton. It says they are engaged on “grossly inferior” terms and conditions and have to purchase their own personal protective equipment (PPE). This is despite the existence of an agreement on agency labour usage and underlines the importance of forthcoming legislation to implement the Temporary Agency Workers Directive.
LRD 30/01/09
