RETAIL GIANT Tesco is facing strike action in its Dún Laoghaire head office over plans to lay off 140 staff as key support functions are moved to the UK.
Siptu has told management it will ballot its members on industrial action in the coming week unless the company agrees to enter into meaningful discussions on its restructuring plan.
It is demanding that the company give a written commitment to put the restructuring plan on hold until talks are completed.
The strike threat at head office is separate from strike action planned by the Mandate trade union in 19 Tesco stores from next month over cuts in working hours.
Last month, Tesco unveiled a new price-cutting strategy at its Border stores aimed at stemming the flow of shoppers heading North. The strategy has been extended to stores in Connacht and will be rolled out in the retailer’s remaining stores soon.
The strategy, which relies heavily on the importation of cheaper UK brands, has been criticised by Irish suppliers. Tesco claims it has resulted in across-the-board cuts of 15 per cent on grocery prices.
Last month, The Irish Times revealed the company makes annual profits of about €250 million in the Republic. Profit margins in Ireland are 9.3 per cent, significantly higher than in other parts of the group.
In its letter to management, seen by The Irish Times, Siptu claims the restructuring is motivated by “profiteering and greed”.
“Tesco is one of, if not the, most profitable companies in the retail sector in Ireland and possibly worldwide. The proposed restructure is simply a way of displacing jobs and forcing employees to reapply for positions with vastly diluted terms and conditions,” wrote Graham Macken, assistant branch organiser.
Mr Macken said it was unacceptable for the company to require staff to reapply for their own jobs. He claimed staff had been told they could go to new jobs but would not hold their benefits. There was no comment from a Tesco spokesman yesterday.
Meanwhile, a report from Food and Drink Industry Ireland has called for the appointment of a supermarket ombudsman and a sectoral code of practice.
