UNI Commerce Global Union forms a Tesco Alliance

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At its meeting in Nyon, Switzerland yesterday, UNI Commerce Global Union decided to establish a world-wide Tesco Alliance. The Alliance will network affiliated commerce unions in all countries where the company is present, to ensure that fundamental workers' and trade union rights are fully respected by management, and to promote a constructive social dialogue and collective agreements.

In Thailand, Tesco's labour relations performance has not been up to the standards that one would expect from the leading British multinational. The small commerce union formed by the Tesco Lotus workers has experienced a rough treatment by local management, which has lead UNI to raise the problems in direct discussions with the group.

The employment conditions that huge multinational retailers offer in developing or newly industrialised countries are of major concern for UNI Commerce. More often than not they are in stark contrast with the huge profits that Tesco and others can report on year after year. Our picture shows a Tesco Lotus superstore complex in central Bangkok.

The UK multinational Tesco is one of the most expansive retailers in the world. From its strong domestic base, where it is the unchallenged market leader, Tesco has established itself solidly in Ireland, Central and Eastern Europe, Turkey and a number of Asian countries. Next year, the world's fourth largest trader will open shop in the United States as well.

At home in the United Kingdom, Tesco and UNI Commerce affiliate Usdaw have concluded a ground-breaking social partnership agreement. Similar agreements have then been negotiated in Poland, the Czech Republic and Hungary, with the participation of UNI Commerce. Tesco has also declared its support for the European joint statement on corporate social responsibility, between EuroCommerce and UNI-Europa Commerce.

Outside Europe, the situation remains more problematic. Both Turkey and Thailand have experienced a local management approach which has not seemed to be in line with Tesco's progressive employer ethics. In Korea, the joint Tesco-Samsung venture has been considered as very strongly anti-union, a situation which the UNI Commerce affiliated union now expects to change as the British retail giant has taken over full ownership.

These and other issues will be on the agenda of the new UNI Commerce Global Union Tesco Alliance, which will also build a cooperation with the Chinese trade unions as part of the UNI - ACFTU contacts.