Supermarket giant Tesco has announced its biggest pay deal for around 280,000 store and depot staff for at least a decade - with hourly paid workers in line for a 5.8% rise.
Employees in branches and Tesco’s customer fulfilment centres will see their pay go from £9.55 to £10.10 an hour from July 24.
Tesco said it was the firm’s biggest single year investment in hourly pay for at least a decade, and was worth around £200million.
It came as telecoms giant BT announced what it said was its biggest pay rise for frontline staff for over 20 years.
Around 58,000 BT workers will get a rise worth £1,500 each.
For lower paid staff, that represents a rise of up to 8%, with the average rise being around 5%.
Both announcements come amid pressure on employers to help boost incomes for workers in the face of a cost of living crisis.
Inflation has jumped to a 30-year high of 6.2% on the back of soaring energy bills and other outgoings.
But Bank of England Governor Andrew Bailey was criticised for urging workers to show restraint when asking for big big rises, warning it could stoke inflation.
Tesco, which is Britain’s largest private-sector employer, also announced that a “skills payment” for delivery drivers will be increasing.
It is part of a package of measures announced that also includes an extension of Tesco’s staff discount allowance, new training and giving workers more flexibility and potential to access more hours.
The pay settlement was agreed with shop workers’ union Usdaw.
Jason Tarry, Tesco UK and Republic of Ireland boss, said: “We are delighted to have reached an agreement with Usdaw that recognises the vital role our colleagues play in our business now and in the future, giving them a well-deserved pay rise, more access to extra hours and setting out a long-term commitment and investment in their careers at Tesco.”
Daniel Adams, Usdaw national officer said: “At such a difficult time, Usdaw is pleased to have secured a pay deal that not only delivers the highest hourly rate of pay in the sector but also delivers on the Union’s New Deal for Workers campaign – giving our members the right to request a “normal hours” contract and ensuring a minimum 16-hour contract going forward.”
BT’s pay deal, agreed with the Communication Workers Union, applies to workers across BT, Openreach, broadband firm Plusnet and mobile phone network EE.
BT group chief executive Philip Jansen said: “We know that the cost of living continues to rise and by making this award, we’re ensuring that our lower paid workers will benefit most and as soon as possible.
“I’m pleased that we’ve been able to make this pay award – the biggest in 20 years - to thank our colleagues and recognise their hard work.”
