By Anthony O. Goriainoff

 

U.K. trade union Unite said on Friday that Tesco PLC's truck drivers and warehouse workers at four of the company's distribution centers overwhelmingly rejected a 2.5% pay rise offer, which was below inflation.

Unite said that Tesco's offer was in fact "a substantial real terms pay cut with the retail price index inflation rate currently running at 4.8%," and that it was preparing for industrial action.

The union warned that if members voted for strike action "Tesco's shelves will quickly become empty this winter, potentially affecting the Christmas period."

Tesco didn't respond to a request for comment.

Tesco shares at 1435 GMT were down 0.35 pence, or 0.1%, at 256.80 pence.

 

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

 

(END) Dow Jones Newswires

September 17, 2021 10:54 ET (14:54 GMT)

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