Shareholders reject union motion

Jul 4 2009 by Iain Laing, The Journal

TESCO shareholders have voted against a motion to end the alleged exploitation of workers in firms supplying meat to the supermarket chain.

The Unite union’s motion, believed to be the first made by a UK union to a company annual general meeting, was backed by 11% of shareholders at the Glasgow meeting, while 7% abstained.

Tesco’s board opposed the motion which it said was unnecessary as workers were already sufficiently protected by the company’s current guidelines which went “far beyond the legal requirements and ensure all workers are treated fairly and without discrimination”.

The board says an independent inquiry into employment practices in the meat and supply chain is underway, conducted by the Equality and Human Rights Commission, which is the most appropriate way of addressing issues of concern.

Unite says this is the first time that a UK union has had a resolution adopted at a shareholder meeting of a major company. It said the motion received more support than it had expected.

The union says contract workers in the supply chain experience “harsh and divisive” conditions and structural discrimination exists in part of the chain, with contract workers experiencing inferior conditions to permanent staff.

In a survey of 48 meat factories, the union claims to have found more than half used agency labour all year round, who were paid on average 38 pence less an hour than permanent staff.