Tesco’s partnership deal 'pre-empts' EU information and consultation Directive

Tesco Ireland, which is part of the UK-based international supermarket chain, has unveiled a landmark new model of consulting worker representatives, incorporating three different layers of consultation and extensive procedures for resolving collective grievances.

In moving to design its own customised indirect/collective employee representative consultation forums, Tesco Ireland has pre-empted the EU Information and Consultation Directive (ICD), which is in the process of being transposed at national level.

The deal is between Tesco Ireland and Mandate (the bar and retail workers’ union) and the Services Industrial Professional & Technical Trade Union (SIPTU) trade unions. It is seen by both sides as a form of management-union collaboration and joint problem solving and as a form of 'best practice' mutual gains.

The consultative forums will operate in parallel with existing industrial relations processes, though there will also be important industrial relations reforms. In particular, management and unions have agreed comprehensive new individual and collective in-house dispute resolution procedures.

The weekly independent magazine, Industrial Relations News (IRN) commented that the agreement 'appears to constitute something of a landmark industrial relations model for the Irish retail industry, and indeed, more generally, a best practice employee consultation and dispute resolution benchmark'.

Prior to 2002, Tesco had a highly adversarial industrial relations climate, culminating in a national strike in 2001, when nearly 10,000 workers took part in a one-day work stoppage on July 5th of that year. Further, in early 2002, an Equality Officer (EO) adjudicating on an alleged sex discrimination case at Tesco made the unusual move of criticizing management and unions for engaging in what he termed a 'war of attrition', 'with both sides expending significant personnel resources in fighting it'.

Both management and unions eventually arrived at the realization that they needed to move away from this adversarial modus operandi and foster a more cooperative industrial relations formula. At the same time, competitive pressures were really starting to bite in the retail sector, especially with the introduction of new competitors, and changes in consumer tastes and shopping patterns.

The mission statement expressed in the new deal is as follows:

'Tesco, Mandate and SIPTU wish to develop a relationship based on clear and shared values, mutual trust and respect and an open and honest consultative approach together. This agreement serves to develop a new consultative approach to facilitate a type of proactive and constructive relationship based on mutual respect for each other’s agenda and at each level and interaction between the parties.'

To achieve this mission, both parties promise to respect each other’s agenda.

• From a trade unions perspective, the aim is always to achieve the best possible rewards package for their members, whilst also representing their members on matters of individual, collective and national importance.

• From a company perspective, to ensure that it remains profitable, has certainty of cost and a sustainable business model with the ongoing ability to adapt to a changing retail market and to deliver value for customers.

This information is made available through the European Industrial Relations Observatory (EIRO), as a service to users of the EIROnline database. EIRO is a project of the European Foundation for the Improvement of Living and Working Conditions. However, this information has been neither edited nor approved by the Foundation, which means that it is not responsible for its content and accuracy. This is the responsibility of the EIRO national centre that originated/provided the information. For details see the "About this record" information in this record.