Staff at Tesco did not receive any Christmas bonus for the second year on row. Instead they had to settle for just a box of Quality Street chocolates. However, Tesco came up with the explanation that they had doubled the staff discount to 20% on certain days during the run-up to Christmas. Therefore, they did not give any cash bonus or vouchers to its employees.
Tesco paid Christmas bonus in 2020
Previously, the biggest supermarket chain in UK handed 10% Christmas bonus in 2020. Similarly, Tesco gave shopping vouchers to its workers in 2021 during the Christmas period. However, the employee received plastic tubs of chocolates worth £5 during this Christmas period. The employees termed this move as a disappointing one as they expected better from their employer. One worker told the publication that the company was “certainly penny-pinching and trying to drive costs down,” as it was apparently the second year in a row his employer had offered him sweets instead of a Christmas bonus.
High revenues during festive season
The industry analysts claim that the festive season was huge for the supermarket chains like Tesco. The people chose home parties in order to save cash. Therefore, the revenue of these supermarket chain skyrocketed during the Christmas season this year. Data from Kantar suggests that supermarket chains sales rose by 6% in the 12 weeks to 25 December.
Tesco’s stance on Christmas bonus
On the other hand, Tesco claims that there is nothing extraordinary in not paying cash bonus during this festive season. Moreover, the company stated that they did not hand out cash bonus at Christmas regularly. “We have never given a regular cash bonus at Christmas and it is wrong to suggest that we have replaced one with chocolates. To help colleagues with their Christmas shopping this year, we doubled our colleague discount to 20% in the run-up to Christmas – one of many benefits available to our colleagues, on top of the near 8% increase in base pay we invested over last year.” A Tesco spokesperson said in a statement.
In its annual report this year, Tesco noted that it had agreed with unions representing shop floor staff in 2019 that a regular annual cash bonus, previously paid in March, would be ditched in return for a higher rate of basic pay.
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