Tesco share price: Grocer faces strike from Valentine’s Day

on Feb 8, 2017
Updated: Oct 21, 2019
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Tesco (LON:TSCO) is facing a strike in Ireland, with workers in nine of the group’s stores set to go on all-out strike starting on Valentine’s Day. The industrial action will continue indefinitely and could expand to a further 15 stores, The Times has reported.

Tesco’s share price has been steady in London this morning, having added 0.21 percent to 194.05p as of 09:17 GMT. The stock is outperforming the benchmark FTSE 100 index which has slipped marginally into the red and is currently 0.18 percent worse off at 7,173.08 points. The grocer’s shares have gained more than 12 percent over the past year, but have given up some six percent in the year-to-date.

The Irish trade union Mandate said yesterday that over 70 percent of its members had voted in favour of an indefinite strike from next Tuesday, February 14. The Times explained in its coverage of the news that the dispute centres on changes to employment contracts affecting up to 250 workers who were hired by the UK grocer before 1996.
The union claims that some workers will see their pay cut by up to 15 percent and will be obliged to work more flexible hours. Tesco meanwhile argues that it has been through 12 months of negotiations and secured a Labour Court recommendation to clear the way for changes to contracts signed before late nights, Sunday opening and online shopping became the norm.
The newspaper quoted the blue-chip supermarket as describing the ballot for strike action as “extremely disappointing”, while insisting that all its stores would open as usual.
“Tesco has accepted the Labour Court recommendation in its totality, even though it was beyond what we believed was affordable. Mandate has rejected it,” a spokesman for the grocer pointed out.
As of 09:59 GMT, Wednesday, 08 February, Tesco PLC share price is 194.85p.

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