14 Feb 2018
Tesco is reportedly facing Britain's largest ever equal pay claim with a bill potentially running to £4 billion. The media has reported that Tesco workers in male-dominated distribution centres may earn over £11 an hour, with the most common pay grade for predominantly female store staff being around £8 per hour.
Law firm Leigh Day has allegedly launched legal action against the supermarket giant on behalf of nearly 100 shop assistants who claim they are paid up to £3 an hour less than their male warehouse workers. This may lead to 200,000 staff being affected by the claim, which could cost the supermarket up to £20,000 per worker in back pay over at least six years.
So what does this landmark case mean for businesses and what does Tesco need to do to resolve it?
Businesses Need to Take Action
This presents an opportunity for organisations to take responsibility to reflect and take a more informed, consistent and fairer perspective when it comes to setting their pay and rewards policy for their employees. For a large business like Tesco to be in this position it questions the systems they have in place to determine the value of a job in the market place. Potentially this limits their opportunity to be fair and consistent with regard to decisions made in respect of pay. Establishing how much someone should be paid should be a scientific process.
The most important thing for a large organisation is to have a pay and reward structure that gives them a focus for what they want to achieve and how they want to achieve it. The pay structure needs to enable them to achieve consistency of pay across both gender, accountability and responsibility. Tesco should have in place a pay and reward policy and procedure that determines the value of a job.
This optimises the opportunity for fairness and equality of pay for all employees. Many organisations know they are paying more for men than for women and the big change is that they now have to do something about it. This is the start of a positive trend and all organisations need to ensure they operate a pay and reward structure which demonstrates equality.
Expert Support with Gender Pay
For more information regarding gender pay reporting download our White Paper here.
If you require expert support please contact Croner Reward. After you send us your pay data, we will analyse and provide a statistical outcome – determining if you have a gender pay gap or not. We can then advise on how to close the gap, or advise on ways to keep it closed if there isn’t one.
Call 0844 728 0103 to speak with one of our pay & reward experts.
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