Tesco braces for £4bn law­suit over gen­der pay gap

Irish Independent - Business Week - - BUSINESSWEEK - Sam Cham­bers

TESCO, the UK’s big­gest pri­vate em­ployer, has been con­fronted with a mas­sive de­mand from work­ers feel­ing short-changed by a gen­der pay gap.

The su­per­mar­ket gi­ant has been hit by claims law firm Leigh Day says could even­tu­ally to­tal as much as £4bn (€3.2bn), fol­low­ing the in­tro­duc­tion of new rules which force Bri­tish com­pa­nies to re­veal the gap be­tween men’s and women’s pay.

The law firm con­tends that fe­male shop-floor work­ers are un­fairly paid less than their male coun­ter­parts in ware­houses and says more than 200,000 work­ers could be en­ti­tled to com­pen­sa­tion. “There re­ally should be no ar­gu­ment that work­ers in stores, com­pared to those work­ing in dis­tri­bu­tion cen­tres, con­trib­ute at least equal value to the vast prof­its made by Tesco,” Leigh Day lawyer Paula Lee said.

Tesco, which pre­vi­ously said that men on av­er­age were paid 14pc more than women in the year through April 2016, said it hadn’t re­ceived the claims.

Of Tesco’s low­est-paid work­ers 62pc are women, but only 41pc of its high­est earn­ers are fe­male. The de­mands come as the UK im­ple­ments new rules re­quir­ing any com­pany em­ploy­ing more than 250 peo­ple to dis­close the dis­par­ity in pay be­tween men and women by April.

Tesco is par­tic­u­larly ex­posed be­cause of its size as well as a re­cent push to put thou­sands more staff on its shop floors in a bid to soften its hard-nosed im­age among UK con­sumers.

Tesco is not alone in fac­ing gen­der pay-re­lated claims.

Sim­i­lar cases were brought in 2014 against Asda, the UK arm of Wal­mart and in 2015 against J Sains­bury.

They are still work­ing their way through the le­gal sys­tem. (Bloomberg)

Tesco faces a chal­lenge over rates paid to work­ers in its stores

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.