Tesco Stores ČR operates a chain of department stores, hypermarkets and supermarkets in the Czech Republic and currently employs 12,000 people. At present, it is one of the biggest retailers in the country. Since the French supermarket chain Carrefour pulled out of the Czech market in 2006, Tesco has also been taking over this retailer’s establishments.
Tesco Stores ČR currently runs a chain of department stores, hypermarkets and supermarkets in the Czech Republic and is one of the biggest retailers in the country. However, trade unions are concerned about aspects of working conditions for employees at Tesco. In November 2006, a coordination committee comprised of 21 trade union organisations commenced negotiations with the Tesco’s managing director on various issues concerning working conditions.
Background
Tesco Stores ČR operates a chain of department stores, hypermarkets and supermarkets in the Czech Republic and currently employs 12,000 people. At present, it is one of the biggest retailers in the country. Since the French supermarket chain Carrefour pulled out of the Czech market in 2006, Tesco has also been taking over this retailer’s establishments.
Issues for negotiation
In November 2006, employee representatives from the Coordination Committee of Trade Union Organisations of Tesco Stores ČR began negotiations with the Managing Director of Tesco Stores, P.J. Clark, on various issues. The committee comprises 21 trade union organisations from Tesco establishments as well as the former establishments of Carrefour and the German chain Edeka, which also left the Czech market in 2006.
On the agenda were questions about the integration of Tesco Stores and the former Carrefour establishments acquired by Tesco, working time during Christmas holidays, and, perhaps most importantly, the introduction of an earlier closing time on 24 December (Christmas Eve in the Czech Republic) of 14.00 instead of 16.00, so that employees can easily return home from work and prepare for the Christmas festivities in good time. Another item on the agenda included the settling of wage matters according to the proposals put forward by employee representatives for a new collective agreement.
Tesco management’s stance
Neither Managing Director P.J. Clark nor the Human Resources Director at Tesco, Radka Pekelská, had any intention of accepting the trade unions’ proposals. Mr Clark’s view on the Tesco/Carrefour integration was diametrically opposed to the opinions of the trade union representatives. The unions were of the opinion that the integration process had shortcomings in terms of both the transfer of staff and in the area of deliveries and sales, caused by a lack of qualified employees who will most likely be replaced by temporary agency staff (CZ0611049I) and students on temporary agreements. In fact, this is something that has also been pointed out by Tesco customers in the Czech Republic. The trade union representatives were concerned that this could ultimately have an impact on employee numbers and wages.
Tesco also rejected the trade unions’ proposal to bring closing time forward to 14.00 on Christmas Eve. The company’s management had decided that stores would stay open until 16.00 on 24 December, with the understanding that management would provide transport home for all employees and that work would not be imposed by order on employees, giving them the choice to volunteer to work on this day. According to the trade unions, however, in reality employees are ordered to work this shift regardless of their wishes. Tesco also disagreed with the demand for a wage increase tabled by the unions for bargaining on the new collective agreement. As a result, the trade unions intended to declare a strike alert, by agreement with employees.
However, in the end, no strike alert was called, as both parties agreed to enter into further negotiations and reach a solution that will be acceptable for both sides. At present, neither party wants to comment on the outcome of the negotiations.
Need for improvement in working conditions
Working conditions in the retail sector, particularly in chain stores operating in the Czech Republic, have for a long time been worse than those in other sectors of the economy. For most employees in the retail sector, it is hard to withstand pressure from employers, because the retail chains usually refuse to cooperate with the trade unions and are unwilling to negotiate with trade union organisations. The last dispute between trade unions and a retail chain in the Czech Republic involved the Plus Discount supermarket chain last year: in this case, the unions criticised allegedly poor treatment of staff by the company (CZ0609029I).
Soňa Veverková, Research Institute for Labour and Social Affairs
Eurofound recommends citing this publication in the following way.
Eurofound (2007), Tesco management reject trade union demands, article.
