Tesco faces £2.5bn bill after European court ruling on equal pay case
ECJ says supermarket shop floor workers’ pay can be compared to distribution centre staff in setback for retailer
3 June 2021 • 10:26am
Supermarket shop floor workers’ pay can be compared to distribution centre staff in legal proceedings, the European Court of Justice said on Thursday in a defeat for Tesco over equal pay.
The supermarket is fighting an equal pay claim that argues its store workers, who are mostly women, are paid up to £3 an hour less than its warehouse and distribution centre workers, who are largely men.
Tesco, which risks a back pay bill of more than £2.5bn for thousands of workers, argues that the two roles could not be compared for the purposes of equal pay. Workers said that the roles are of equal value and should be paid the same.
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British courts referred the case to EU judges in Luxembourg, who retain jurisdiction on cases brought before Brexit, for a ruling to clarify the interpretation of the law.