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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Andy Burnham and Sadiq Khan are both slippery self-mythologisers – so why do we rate one more than the other?

Their obsessions with their childhoods have both become punchlines; but one of these jokes, it feels to me, is told with a lot more affection than the other.

Andy Burnham is a man whose policies and opinions seem to owe more to political expediency than they do to belief. He bangs on to the point of tedium about his own class, background and interests. As a result he’s widely seen as an unprincipled flip-flopper.

Sadiq Khan is a man whose policies and opinions seem to owe more to political expediency than they do to belief. He bangs on to the point of tedium about his own class, background and interests. As a result he’s the hugely popular mayor of London, the voice of those who’d be proud to think of themselves as the metropolitan liberal elite, and is even talked of as a possible future leader of the Labour party.

Oh, and also they were both born in 1970. So that’s a thing they have in common, too.

Why it is this approach to politics should have worked so much better for the mayor of London than the would-be mayor of Manchester is something I’ve been trying to work out for a while. There are definite parallels between Burnham’s attempts to present himself as a normal northern bloke who likes normal things like football, and Sadiq’s endless reminders that he’s a sarf London geezer whose dad drove a bus. They’ve both become punchlines; but one of these jokes, it feels to me, is told with a lot more affection than the other.

And yes, Burnham apparent tendency to switch sides, on everything from NHS privatisation to the 2015 welfare vote to the leadership of Jeremy Corbyn, has given him a reputation for slipperiness. But Sadiq’s core campaign pledge was to freeze London transport fares; everyone said it was nonsense, and true to form it was, and you’d be hard pressed to find an observer who thought this an atypical lapse on the mayor’s part. (Khan, too, has switched sides on the matter of Jeremy Corbyn.)

 And yet, he seems to get away with this, in a way that Burnham doesn’t. His low-level duplicity is factored in, and it’s hard to judge him for it because, well, it’s just what he’s like, isn’t it? For a long time, the Tory leadership’s line on London’s last mayor was “Boris is Boris”, meaning, look, we don’t trust him either, but what you gonna do? Well: Sadiq is Sadiq.

Even the names we refer to them by suggest that one of these two guys is viewed very differently from the other. I’ve instinctively slipped into referring to the mayor of London by his first name: he’s always Sadiq, not Khan, just as his predecessors were Boris and Ken. But, despite Eoin Clarke’s brief attempt to promote his 2015 leadership campaign with a twitter feed called “Labour Andy”, Burnham is still Burnham: formal, not familiar. 

I’ve a few theories to explain all this, though I’ve no idea which is correct. For a while I’ve assumed it’s about sincerity. When Sadiq Khan mentions his dad’s bus for the 257th time in a day, he does it with a wink to the audience, making a crack about the fact he won’t stop going on about it. That way, the message gets through to the punters at home who are only half listening, but the bored lobby hacks who’ve heard this routine two dozen times before feel they’re in the joke.

Burnham, it seems to me, lacks this lightness of touch: when he won’t stop banging on about the fact he grew up in the north, it feels uncomfortably like he means it. And to take yourself seriously in politics is sometimes to invite others to make jokes at your expense.

Then again, perhaps the problem is that Burnham isn’t quite sincere enough. Sadiq Khan genuinely is the son of a bus-driving immigrant: he may keep going on about it, but it is at least true. Burnham’s “just a northern lad” narrative is true, too, but excludes some crucial facts: that he went to Cambridge, and was working in Parliament aged 24. Perhaps that shouldn’t change how we interpret his story; but I fear, nonetheless, it does.

Maybe that’s not it, though: maybe I’m just another London media snob. Because Burnham did grow up at the disadvantaged end of the country, a region where, for too many people, chasing opportunities means leaving. The idea London is a city where the son of a bus driver can become mayor flatters our metropolitan self-image; the idea that a northerner who wants to build a career in politics has to head south at the earliest opportunity does the opposite. 

So if we roll our eyes when Burnham talks about the north, perhaps that reflects badly on us, not him: the opposite of northern chippiness is southern snobbery.

There’s one last possibility for why we may rate Sadiq Khan more highly than Andy Burnham: Sadiq Khan won. We can titter a little at the jokes and the fibs but he is, nonetheless, mayor of London. Andy Burnham is just the bloke who lost two Labour leadership campaigns.

At least – for now. In six weeks time, he’s highly likely to the first mayor of Greater Manchester. Slipperiness is not the worst quality in a mayor; and so much of the job will be about banging the drum for the city, and the region, that Burnham’s tendency to wear his northernness on his sleeve will be a positive boon.

Sadiq Khan’s stature has grown because the fact he became London’s mayor seems to say something, about the kind of city London is and the kind we want it to be. Perhaps, after May, Andy Burnham can do the same for the north – and the north can do the same for Andy Burnham.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Daniel Hannan. You can find him on Twitter or Facebook.