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Tesco resists equal pay claims citing economic risk

Financial Times Companies •
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Tesco warns that equalizing store and warehouse wages would disregard economic reality and strain viability across its network. Facing claims that date to 2018, the UK’s largest supermarket chain argues it must preserve pay gaps shaped by market forces and operational demands. Shop-floor roles, held largely by women, remain below distribution-center wages, where men dominate, as the firm resists rewriting labor economics.

About 60,000 workers seek six years of back-pay in a dispute that pits £4bn against Tesco’s narrower estimate of £1.7bn. Asda and Morrisons have already confronted similar tribunals, while Next lost ground this year on equal value yet escaped discrimination findings. Reading tribunal hearings test whether gender-neutral factors truly justify the spreads that separate retail shelves from logistics hubs.

Should claimants win, Tesco risks cascading wage inflation and managerial imbalances that could disrupt warehouse stability. Lawyers for staff allege the firm actively molded pay structures rather than submitting to external rates. A five-week hearing will determine whether commercial pragmatism can legally outweigh parity arguments put forth by current and former employees.