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

Nicola Sturgeon. Photo: Getty
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For the first time in decades, there is genuine dissent in Scottish Nationalist ranks

The First Minister is facing pressure to talk less about independence - and bring on new talent in her party.

She so recently seemed all-powerful, licensed to reign for as long as she chose, with the authority to pursue the return of our national sovereignty. We would then have the ability to strike our own deals on our own terms, a smaller, smarter, leaner nation freed from the stifling constraints of partnership with a much larger neighbour. There was, she repeatedly told us, nothing to be afraid of.

Now, suddenly, she is the victim of her own miscalculation: having misread the public mood, having raced too far ahead of moderate opinion, she finds herself at bay. The voters have delivered a public humiliation, while an opposition party until recently lampooned as unelectable is on the march. There is, suddenly, talk of her departure sooner rather than later.

Yes, this is a tough time to be Nicola Sturgeon…

Let’s not overstate it. The position of Scotland’s First Minister is considerably more secure than that of the UK’s Prime Minister. Theresa May wants out as soon as is feasible; Sturgeon, one suspects, will have to be dragged from Bute House. Sturgeon retains enough respect among the public and support among her colleagues to plough on for now. Nevertheless, things are not what they were before the general election and are unlikely ever to return to that happy state.

It’s all because of Scexit, of course. Sturgeon’s unseemly sprint for the indy finishing line left enough Scottish voters feeling… what? Mistreated, taken for granted, rushed, patronised, bullied… so much so that they effectively used June 8 to deliver a second No vote. With the idea of another referendum hanging around like a bad headache, the electorate decided to stage an intervention. In just two years, Sturgeon lost 40 per cent of her Westminster seats and displaced half a million votes. One could almost argue that, by comparison, Theresa May did relatively well.

For the first time in decades, there is genuine dissent in Nationalist ranks. Tommy Sheppard, a former Labour Party official who is now an influential left-wing SNP MP, published an article immediately after the general election calling on the First Minister to ‘park’ a second referendum until the Brexit negotiations are complete. There are others who believe the party should rediscover its talent for the long game: accept the public mood is unlikely to change much before the 2021 devolved elections, at which point, even if the Nats remain the single largest party, Holyrood might find itself with a unionist majority; concentrate on improving the public services, show what might be done with all the powers of an independent nation, and wait patiently until the numbers change.

There are others – not many, but some – who would go further. They believe that Sturgeon should take responsibility for the election result, and should be looking to hand over to a new generation before 2021. The old guard has had its shot and its time: a party with veterans such as Sturgeon, John Swinney and Mike Russell in the key jobs looks too much like it did 20 years ago. Even the new Westminster leader, Ian Blackford, has been on the scene for donkey’s. There are more who believe that the iron grip the First Minister and her husband, SNP chief executive Peter Murrell, have on the party is unhealthy – that Murrell should carry the can for the loss of 21 MPs, and that he certainly would have done so if he weren’t married to the boss.

The most likely outcome, given what we know about the First Minister’s nature, is that she will choose something like the Sheppard route: talk less about independence for the next 18 months, see what the Brexit deal looks like, keep an eye on the polls and if they seem favourable go for a referendum in autumn 2019. The question is, can a wearied and increasingly cynical public be won round by then? Will people be willing to pile risk upon risk?

As the hot takes about Jeremy Corbyn’s surprise election performance continue to flood in, there has been a lot of attention given to the role played by young Britons. The issues of intergenerational unfairness, prolonged austerity and hard Brexit, coupled with Corbyn’s optimistic campaigning style, saw a sharp rise in turnout among that demographic. Here, Scotland has been ahead of the curve. In the 2014 referendum, the Yes campaign and its can-do spirit of positivity inspired huge enthusiasm among younger Scots. Indeed, only a large and slightly panicked defensive response from over-65s saved the union.

That brush with calamity seems to have been close enough for many people: many of the seats taken from the Nats by the Scottish Tories at the general election were rural, well-to-do and relatively elderly. The modern electorate is a fickle thing, but it remains rational. The Corbynites, amid their plans for total world domination and their ongoing festival of revenge, might bear that in mind.

Chris Deerin is the New Statesman's contributing editor (Scotland). 

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