Tesco's treatment of its workers shows why we must stop subsidising it

After allegations of mistreatment of disabled and agency workers, the government should consider asking Tesco to repay the generous grants it has received, says Conservative MP Robert Halfon.

Last year, Tesco made a pre-tax profit of £3.5bn. As Dennis Skinner has pointed out, in recent years the supermarket giant has received subsidies from "development agencies, European money, central government, local government" and more. In addition, tax credits have helped to subsidise Tesco's wage bill and it now even runs a "Home Efficiency" business to take the best advantage of taxpayer subsidies for solar panels.

These subsidies might be defensible if Tesco were a responsible employer. But I am increasingly sceptical of this. In fact, I have been shocked at Tesco’s treatment of 800 workers in my constituency of Harlow, many of whom are now at risk of redundancy. In particular, there have been serious allegations of:
  1. Maltreatment of disabled workers
  2. Attacks on equal pay
  3. Poor treatment of agency and full-time staff
 
The story begins a few months ago, when Tesco announced that it was building a large distribution plant in Dagenham. Staff were told that the Harlow distribution hub would stay open and that they would keep their jobs. Jon Cruddas - Dagenham’s MP - was told the same thing. So was the USDAW trade union.
 
Then, Tesco decided to pull out of the US and something changed. Despite the Harlow depot being one of the best performing in the country, Tesco decided it had to shut it down. Almost 800 workers faced the sack.
 
Like all big companies, Tesco has made some offers of alternative employment. This includes the option of transferring to Dagenham. But the gesture has been half-hearted at best. Agency workers or support workers, such as catering teams, will be shut out. Terms and conditions will be ripped up. Pay will be slashed. Contractual entitlements, such as higher rates of pay for overtime, will be scaled back. Despite having to commute to Dagenham each day from Harlow, many workers will now lose a third of their take-home pay, or lose their job. One worker told me that he will lose nearly £10,000 a year.
 
Most shocking of all is Tesco's treatment of disabled workers. One worker is approaching retirement, and suffers from epilepsy and arthritis. He has worked hard for Tesco over the last 24 years. At the Harlow depot, Tesco has rightly made adjustments to allow him to do a day’s work. However, if he goes to Dagenham, he will not be allowed to take these adjustments with him - pushing him on to the dole.
 
Worryingly, one disabled employee, who has a degenerative back condition, has allegedly been threatened by Tesco. In a recent meeting, he was told by a Tesco manager that if he continued talking to me - his local MP - then he would be fired, instead of being transferred elsewhere. Surely this is morally wrong? USDAW estimates that there are around 30 disabled staff from Harlow who will be affected in this way.
 
Agency staff are victims too. Tesco has insisted that agency workers will not be allowed to transfer to another site. Instead, they will be shown the door. There are around 140 of these people, mostly from eastern Europe, who also work extremely long hours. This is despite being paid less for doing exactly the same work as permanent Tesco colleagues. I have been told that Tesco are able to do this by employing the "Swedish Derogation" loophole in the Agency Workers Regulations: i.e. allowing an agency to employ staff on a minimum contract, where they continue to be paid between assignments, but must waive their rights to equal pay. Parliament should consider if this practice is really in keeping with the spirit of British workers' rights.
 
At heart, this is an issue of fairness. It cannot be right that companies can get away with paying agency workers much less for doing exactly the same job. It is wrong that disabled workers should be treated so poorly. But, finally, the government must consider if it should ask Tesco to repay the generous grants it has received from the taxpayer, for example in Bolsover, where Tesco received money to set up its distribution factory, which it is also now closing. Any type of supportive grant should be stopped unless Tesco can guarantee fair treatment for its workers.
 
Although I understand the need for efficiency, particularly in light of Tesco’s failure to break into the US market, it is wrong that Harlow workers, who have given years of their lives in service to a multi-billion pound company, are paying for its corporate mistakes. In the last few weeks, I have had messages from  people saying that I should not be campaigning against Tesco, that I should be supporting its stance as a Conservative. But it is precisely because I am a Conservative that I am opposed to how Tesco is treating its workers. Conservatism was never meant to be about big corporations: it is about the rights of families and ordinary people; about helping them to stand up to monolithic corporations and big government. In fact, one of the reasons that I support trade unions - and am a Conservative trade unionist myself - is because of the impressive work of USDAW in supporting the people of Harlow in recent months.
 
Tesco founder Jack Cohen famously said "Pile it high, sell it cheap". I doubt he would ever have meant sell the workers cheap.
 
Editor's note: Tesco has now reached agreement with USDAW on the terms on which the Harlow site will close. The company said: "We are very pleased for all parties that an agreement has been reached with USDAW representatives, and that subject to a member vote, this matter is now resolved."
 
Tesco has also denied that its Bolsover plant received any public subsidy and has pointed out that the agencies who provided staff for Harlow have been awarded the contracts for Dagenham, so many agency workers will move from one site to the other.
People leave a Tesco Extra supermarket in Birkenhead, north-west England, on March 5, 2012. Photograph: Getty Images.

Robert Halfon is Conservative MP for Harlow. He tweets at @halfon4harlowMP

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“I felt very lonely”: addressing the untold story of isolation among young mothers

With one in five young mothers lonely “all the time”, it’s time for employers and services to step up.

“Despite having my child with me all the time, I felt very lonely,” says Laura Davies. A member of an advisory panel for the Young Women’s Trust, she had her son age 20. Now, with a new report suggesting that one in five young mums “feels lonely all the time”, she’s sharing her story.

Polling commissioned by the Young Women’s Trust has highlighted the isolation that young motherhood can bring. Of course, getting out and about the same as you did before is never easy once there’s a young child in the picture. For young mothers, however, the situation can be particularly difficult.

According to the report, over a quarter of young mothers leave the house just once a week or less, with some leaving just once a month.

Aside from all the usual challenges – like wrestling a colicky infant into their jacket, or pumping milk for the trip with one hand while making sure no-one is crawling into anything dangerous with the other – young mothers are more likely to suffer from a lack of support network, or to lack the confidence to approach mother-baby groups and other organisations designed to help. In fact, some 68 per cent of young mothers said they had felt unwelcome in a parent and toddler group.

Davies paints what research suggests is a common picture.

“Motherhood had alienated me from my past. While all my friends were off forging a future for themselves, I was under a mountain of baby clothes trying to navigate my new life. Our schedules were different and it became hard to find the time.”

“No one ever tells you that when you have a child you will feel an overwhelming sense of love that you cannot describe, but also an overwhelming sense of loneliness when you realise that your life won’t be the same again.

More than half of 16 to 24-year-olds surveyed said that they felt lonelier since becoming a mother, with more than two-thirds saying they had fewer friends than before. Yet making new friends can be hard, too, especially given the judgement young mothers can face. In fact, 73 per cent of young mothers polled said they’d experienced rudeness or unpleasant behaviour when out with their children in public.

As Davies puts it, “Trying to find mum friends when your self-confidence is at rock bottom is daunting. I found it easier to reach out for support online than meet people face to face. Knowing they couldn’t judge me on my age gave me comfort.”

While online support can help, however, loneliness can still become a problem without friends to visit or a workplace to go to. Many young mothers said they would be pleased to go back to work – and would prefer to earn money rather than rely on benefits. After all, typing some invoices, or getting back on the tills, doesn’t just mean a paycheck – it’s also a change to speak to someone old enough to understand the words “type”, “invoice” and “till”.

As Young Women’s Trust chief executive Dr Carole Easton explains, “More support is needed for young mothers who want to work. This could include mentoring to help ease women’s move back into education or employment.”

But mothers going back to work don’t only have to grapple with childcare arrangements, time management and their own self-confidence – they also have to negotiate with employers. Although the 2003 Employment Act introduced the right for parents of young children to apply to work flexibly, there is no obligation for their employer to agree. (Even though 83 per cent of women surveyed by the Young Women’s Trust said flexible hours would help them find secure work, 26 per cent said they had had a request turned down.)

Dr Easton concludes: “The report recommends access to affordable childcare, better support for young women at job centres and advertising jobs on a flexible, part-time or job share basis by default.”

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland