Tesco's warning from US unions

[Omaha Steve]

Source: Guardian

Tesco's warning from US unions


Retail giant threatened with boycott as it prepares launch of American chain

Zoe Wood, retail correspondent
Sunday June 10, 2007
The Observer

American union officials have sounded their strongest warning yet to Tesco, stating that they will impede the retailer's West Coast debut with mass picketing if it does not talk to them.

'The market Tesco is entering is very heavily unionised,' said United Food and Commercial Workers' (UFCW) spokeswoman Jill Cashen. 'It is in its financial best interests to enter into a union relationship. We have in the past successfully mobilised our community to turn business away from companies who are not offering union representation to employees.'

The UFCW, which has 1.3 million members in North America and 165,000 in California, argues that non-union stores pay workers lower wages and scrimp on benefits. It waged a two-year war in California against Mexican giant Grupo Gigante, which finally relented.

The threat came as Tesco's US chief executive, Tim Mason, provided details of Fresh & Easy, the chain of convenience-style stores it will launch this autumn. Tesco is investing £250m a year in the start-up it believes could eventually rival its £35bn UK operation. 'There is no point going to America to build a small business,' said Mason.


Read more: http://www.guardian.co.uk/retail/story/0,,2099404,00.html

[PSPS]

1. Tesco is a store the likes of which the US sorely needs

These smaller, full-service shops are quite popular in the UK, and I'd love to have one near me. But I'd prefer they not go the sweatshop route and pay their employees a living wage. The last thing we need is another retailer who has a department dedicated to instructing its employees on how to apply for welfare, like WalMart does.

[AndreaCG]

2. I remember Tesco was cheap.

Safeway was a little more upscale, although in 1980 neither was up to the level of today's grocery store.

I have no idea what their union policy is or was.

[WritersBlock]

4. I detest shopping at Tesco.

Made the mistake of buying their "Value" chicken, which looked fine in the package, until I opened it and discovered that I'd also paid for excess skin & feathers bunched up and hidden underneath. Very frequently, we'll buy a package of fruit or vegetables and have to throw away at least two pieces that are either spoiled or otherwise inedible.

Maybe their quality control will be higher elsewhere, but I wouldn't hold my breath.

[T_i_B]

5. Tesco? Smaller?

On the contrary they are the biggest supermarket in the UK by miles and some of their stores are really huge.

I'm afraid that you may well find Tesco not all that much better then Wal-Mart.

[maddezmom]

6. The Fresh and Easy is a smaller store concept

from what I've read. More on the size scale of Waitrose. I don't shop at Tesco superstore, but do have some of the products delivered; tp,paper towels, water, cereal, etc. I like Waitrose and the smaller markets for fresh produce etc.

[T_i_B]

7. Tesco's is not the same as Waitrose

Waitrose is the upmarket superstore over here, and Tesco does a whole lot more then their "metro" stores. The local one to me is a big 24 hour jobbie for instance, and the town where I used to live even has a Tesco's which sells nothing but non-food goods!

[maddezmom]

8. I understand that as I shop at Waitrose

but the stores in the US sound like they are going to be more similar to Waitrose than the Tesco markets in the UK. :)

[1932]

3. To paraphrase the character Tracy Jordan on 30 Rock

"I love Fresh & Easy so much I want to take it out behind the middle school and get it pregnant."

What kind of name is "Fresh & Easy" for a supermarket? What kind of name is that for ANYTHING?

[JawJaw]

9. Beware "Tescofication" Of Your Town

If Wal-Mart hasn't already sucked the life out of your local retailers, Tesco will finish the job nicely. Initially, of course the consumer gets more choice and convenience, but when all the little guys go under, what's left of your local High Street? And how much cut of the cake do local suppliers get?

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