Employees at One Stop, a convenience store owned by British grocer Tesco Plc, are seeking additional severance pay, according to an Aug. 6 report in The Guardian.
Office staff at the convenience store reportedly wants more severance pay, often called a "redundancy package" in the U.K., after finding out that their counterparts at Tesco's main office are getting up to thousands of pounds in additional payments based on how long each employee has worked at the company, The Guardian reported, citing unnamed sources.
The severance packages are being offered to employees who are leaving Tesco as part of a broader cost-cutting measure aimed at reducing company expenses by about £1.5 billion. In total, more than 2,300 staff members are expected to lose their jobs in the next few months, according to a plan announced in June and detailed by the British newspaper.
The affected staff at One Stop believe that severance is not a "level playing field," a source told The Guardian. Representatives from One Stop were scheduled to meet with Tesco managers Aug. 4 to discuss the severance deal, according to the report.
Tesco did not immediately respond to a request from S&P Global Market Intelligence for comment on the alleged compensation disparity. A spokesperson cited in The Guardian's report said the reductions at One Stop were designed to streamline operations the company has in common with Tesco, adding that Tesco will continue to run One Stop as a separate business.
The company has been trying to cut costs on a number of fronts. In June, Tesco said it would close a call center in Cardiff in 2018, a move that will eliminate 1,100 positions.