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

Getty
Show Hide image

Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

0800 7318496