Tesco gets a Baracking over labour standards, low wages and animal welfare
Following on from the focus on Primark’s ethical standards over the past couple of weeks, Tesco’s AGM today has meant attention has now turned to the supermarket’s commitment to ethical trade, with pressure being brought to bear on the retailer from several different directions.
Perhaps the most high profile Tesco critic of recent weeks is the US Democratic Party’s nominee for the presidential election - Barack Obama. Mr Obama recently wrote to Tesco Chief Executive Sir Terry Leahy encouraging the retailer to engage with Trade Unions, after the management of the company’s US operation - Fresh & Easy - refused to have discussions with UFCW, a grocery workers’ union.
At the same time, Tesco is also under pressure from War on Want and Labour Behind the Label who have undertaken research into the living standards of workers in some of Tesco’s Indian suppliers. The two organisations claim that workers earn an average of £38 a month - £14 below the estimated living wage of £52 per month, while working long hours and even having to do forced overtime shifts. The report also claims that workers are put under pressure to meet onerous targets, and are fired if they fail to do so.
Tesco has responded to the War on Want allegations saying they were ‘unsubstantiated’, they have criticised War on Want for declining to engage with the supermarkets. “Out of the blue they make these allegations without producing any evidence,” Tesco said.
In the UK, meanwhile, TV cook Hugh Fearnley-Whittingstall is encouraging Tesco to improve the welfare of the intensively reared chickens that it procures. Animal welfare campaign groups have also focussed on the sale of live turtles in Tesco stores in China
Labour standards are now an established issue at the Tesco AGM. Last year War on Want filed a shareholder resolution focused on living wages in Bangladesh. In 2006, Action Aid brought South African farm-worker Gertruida Baartman to address the shareholders. The debate around Primark shows that these issues are only growing in consumers’ awareness and we can expect more calls for retailers to respond.
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