Tesco commits to double-digit wage rises in 2017

Deals

In an apparent response to news earlier this week that workers will demonstrate Saturday and may subsequently call a strike if wages are not raised, Tesco in Hungary issued a press release Friday defending its wage policies in 2017.

The press release says that Tesco-Global Áruházak Zrt. has raised the wages of some 13,700 employees this year by an average of 12.4%, the second year running it has effected a double-digit hike.

The company says that both its long-term goal and the main tendency of its wage development policy are the same: to remain among the top three best-paying retail supermarket chains in terms of its wage package as a whole, while concentrating on raising the wages of the lowest earners among its workforce in particular. 

In the past two years, Tesco has spent HUF 7.4 billion on wage hikes in Hungary, the press release claims. It notes that while retail sales volume increased last year by 4-5%, wages expanded by several times this figure. 

Tesco claims that each year it determines wages based on clear-cut guiding principles. Given its commitment to sustainable and successful operation in the region, and within this Hungary, it indicated that these principles depend on the performance of the Central European market. The company said it is working on developing a pay matrix that reflects the complexity of its positions, and noted that it also takes into account varying conditions on labor markets across the region.

ADVERTISEMENT

Industries lose billions on counterfeit products Analysis

Industries lose billions on counterfeit products

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.