🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

EU court backs Tesco workers in equal pay dispute

Published 06/03/2021, 04:51 AM
Updated 06/03/2021, 06:30 AM
© Reuters. FILE PHOTO: A logo of Tesco is pictured outside a Tesco supermarket in Hatfield, Britain October 6, 2020. REUTERS/Peter Cziborra/File Photo
TSCDY
-

By Foo Yun Chee

BRUSSELS (Reuters) -Thousands of current and former employees of UK supermarket group Tesco (OTC:TSCDY) on Thursday won the support of Europe's top court in their fight for equal pay in a judgment that could affect other retailers.

Tesco found itself in the spotlight after about 6,000 current or former employees took their grievance to an employment tribunal in Watford, near London.

They argued the company's shop workers - mostly women - had not received equal pay for equal work compared with its distribution workers - mostly men - since February 2018, in breach of EU and UK laws. The shop staff argued the firm should be seen as a single entity in terms of employment conditions.

Tesco had argued an EU law defining equal pay for equal work, or work of equal value, was not directly applicable in this case.

The UK tribunal sought guidance from the Luxembourg-based Court of Justice (CJEU), Europe's highest, which rejected Tesco's arguments.

"The principle, laid down by EU law, of equal pay for male and female workers can be relied upon directly, in respect both of 'equal work' and of 'work of equal value', in proceedings between individuals," CJEU judges said.

Tesco said the jobs in its stores and distribution centres were different and hence the different pay.

"These roles require different skills and demands which lead to variations in pay – but this has absolutely nothing to do with gender," a spokeswoman said in a statement.

"We reward our colleagues fairly for the jobs they do and work hard to ensure that the pay and benefits we offer are fair, competitive and sustainable. These claims are extremely complex and will take many years to reach a conclusion. We continue to strongly defend these claims," she said.

The Watford tribunal will now have to take the CJEU ruling into account when it decides on the case.

© Reuters. FILE PHOTO: A logo of Tesco is pictured outside a Tesco supermarket in Hatfield, Britain October 6, 2020. REUTERS/Peter Cziborra/File Photo

The CJEU said it had jurisdiction over the case in accordance with Britain's withdrawal deal with the EU.

The CJEU ruling is final and cannot be appealed. The case C-624/19 Tesco Stores.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.