Tesco workers should receive a fairer share of the supermarket group’s profits, according to the UK trade union Unite the Union, which has criticised rising executive pay and shareholder returns amid ongoing food price pressures.
The intervention follows Tesco’s third-quarter and Christmas trading update, which showed strong performance during the key retail period.
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Unite argues that the gains highlight a widening gap between corporate rewards at the top of the business and the financial strain facing frontline supermarket workers and consumers during the UK cost of living crisis.
Tesco profits under scrutiny as cost pressures persist
Food prices in the UK have increased by around 40 per cent over the past four years, according to industry and government data. Unite says this has placed sustained pressure on household budgets, including those of Tesco’s own staff.
During the same period, Tesco’s operating profit rose sharply. Company figures show operating profit increased by about 72 per cent between the 2020/21 and 2024/25 financial years.
Unite claims this contrast raises questions about how the benefits of improved trading performance are being distributed.
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By GlobalDataResponding to the results, Unite general secretary Sharon Graham said: “While workers and their families, including Tesco’s own workers, are still struggling with rampant food inflation, Tesco is paying out millions in shareholder dividends and their executive pay has soared.”
Unite calls for fair pay for supermarket workers
The union argues that supermarket workers should see a clearer link between Tesco’s financial success and their own pay and conditions. Unite has repeatedly called on large retailers to prioritise wages and job security as inflation continues to affect living standards.
Graham described the company’s recent financial trends as “rampant profiteering”, adding: “This sort of rampant profiteering is simply a disgrace, and it must be stopped.”
Unite has not set out specific pay demands in response to the latest figures but has indicated it will continue to press for improvements for retail workers.
Executive pay growth fuels debate on corporate responsibility
Unite has also highlighted a steep rise in executive remuneration at Tesco. Company disclosures show that total executive pay increased by about 82 per cent between 2022 and 2024.
The union says this growth undermines claims that retailers are doing all they can to manage costs fairly across their operations.
Tesco, one of the UK’s largest supermarket groups, employs hundreds of thousands of staff across its stores, distribution centres and offices. Its annual report details increased returns to shareholders alongside investments in pricing and operations.
The dispute reflects a broader debate across the retail sector about profit distribution, executive pay and the responsibility of major supermarkets during periods of high inflation.
As UK supermarket profits remain under close scrutiny, pressure from unions such as Unite is likely to remain a key factor in industrial relations discussions during 2025.
