Retailing, Franchising, and Consumerism Business Intelligence in China

Tesco Signs Collective Labor Contract With Employees In China

British retail giant Tesco has signed its first collective labor contract with employees in China.

The contract reportedly covers Tesco's 30,000 employees in 109 supermarkets, 14 convenience stores, and six logistic centers in China.

According to the collective contract, Tesco will establish a collective wage consultation system. Based on the increase of China's consumer price index, the profit conditions of the company, and the wage level of the entire industry, Tesco will discuss the salary increase rate with the labor union in February every year. The retailer will also sign a wage-related special agreement to ensure that the employees can share the development benefits of the company.

In addition, the collective contract states that employees who work for the company for five years and above will sign open-ended contracts. All employees will sign labor contracts and no ancillary labor will be used. The company offers seven rewards to employees in China, including free work-time meals; annual per capita holiday gifts of CNY250; quarterly per capita team building funds of CNY80; more paid leaves; physical and exams; and additional medical insurance.

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