Workers at the Tesco distribution site in Peterborough are to be consulted on whether an industrial action ballot should take place as part of a pay dispute.

Usdaw – the Union of Shop, Distributive and Allied Workers – is asking its members at eight sites if they are prepared to continue with a process that could lead to strike action.  

The union says workers at the sites overwhelmingly rejected Tesco’s pay offer of between 2 per cent plus £500 and 4.4 per cent, depending on contract, along with some additional enhancements.    

Mark Todd,  Usdaw national officer, says: “Following the overwhelming rejection of Tesco’s final offer, the company has made it clear that they do not intend to reconvene negotiations or make an improved offer at this stage.  

“That means it is now necessary to carry out a consultative ballot, to assess our members' level of willingness to carry out industrial action.  

“Usdaw members have spoken and made their opinion clear, that the company’s offer is not an acceptable pay increase.  

“We are disappointed not to reach an agreed settlement and now have no choice but to move to a consultative ballot.  

“Usdaw remains open to resolving the dispute constructively and we urge the company to get back around the negotiating table.” 

The eight Tesco distribution sites affected are: Peterborough, Hinckley, Magor, Southampton, Daventry Clothing, Goole, Lichfield and Livingston.    

The Peterborough site is located in Staplee Way. 

The union will run the consultative ballot from September 9-24, 2024.

A spokesperson for Tesco said: “We have made a fair pay offer to colleagues working at our distribution sites, which is equivalent to double the current rate of CPI inflation, and we continue to engage with Usdaw.   

“In recent years we have made substantial investments in pay and benefits for our distribution colleagues, with pay increasing by 23 per cent over the past three years.”