News

By Andrew Cleary

June 30 (Bloomberg) -- Tesco Plc, the world’s third-largest retailer, was today accused by a union representative body of failing to uphold its own labor principles in the U.S., South Korea and Thailand, and of ignoring a request from Barack Obama

to engage in discussions with U.S. unions.

The Uni Global Union, which represents more than 20 million workers in 900 unions globally, said reports drafted in response

to union complaints found “inconsistencies” between Tesco’s global principles and local working practices in the countries.

“When it comes to labor and employee issues outside the U.K., Tesco are trying to avoid their responsibilities,” Phil Bowyer, deputy general secretary of Uni, said at a press briefing held in central London today. “Where it can avoid talking to trade unions, Tesco will do so.”

Tesco spokesman Jon Church said the claims are untrue. The reports “are a travesty and misrepresent the truth,” he said.

Michael Bride, a union leader who compiled a report on Tesco’s U.S. unit, told the briefing that the retailer’s Chief Executive Officer Terry Leahy “ignored a written request from Barack Obama to engage with my union.”

The letter, seen by Bloomberg news, was written on June 23, 2008, before Obama became U.S. president. Church said Leahy had replied to the letter.

In Thailand, the supermarket company has required staff to work consecutive shifts for as long as 24 hours, and promoted employees who have resigned from unions, Uni said in its report into the country’s Lotus chain. In the U.S., the company’s Fresh

& Easy unit imposes pension conditions that restrict most employees from qualifying for benefits, the report said.

Church said all Tesco staff worldwide may join trade unions and can voice their opinions “in a number of ways.”



Leahy has previously stated that union membership is for individual staff to decide on, not Tesco.

The retailer has “productive relationships” with unions in “a number of countries” including the U.K. and Poland, Church said. He declined to provide details of any union affiliations in the U.S., Korea or Thailand.



For more information visit: www.bloomberg.com