Critics attack Tesco at shareholders' meeting

By Matthew Scuffham
Reuters

LONDON (Reuters) - Tesco, the UK's biggest retailer, was attacked by critics ranging from a trade unionist from the United States to a celebrity chef at its annual shareholder meeting on Friday.

Tesco, which last year made a profit of 2.8 billion pounds, was attacked by the United Food and Commercial Workers Union (UFCW), following Tesco's move late last year to open its 'Fresh & Easy' outlets in the southwestern U.S.

Jim McLaughlin, UFCW president in Arizona, told Reuters that Tesco has enraged his union by refusing to acknowledge its repeated attempts to establish a relationship with the company.

"We are here to inquire why there has been no dialogue in the U.S. whereas in the UK it is an established practice for Tesco to engage with unions," he said.

The union represents 1.3 million workers in the U.S. including 1 million in the food retail sector.

"All of our calls to the company have fallen upon deaf ears so we are looking to engage with the company at a higher level and have a constructive dialogue with them," he said.

Tesco Chief Executive Terry Leahy hit back at the union's accusations when questioned by MacLaughlin at the meeting accusing the union of adopting a negative attitude from the start towards the retailer.

"The UFCW has attacked Tesco from day one and only showed an interest in damaging our business. Every Fresh and Easy employee has the right to be in the union but they don't want to join," Leahy told the meeting.

In response, McLaughlin adopted a conciliatory tone telling Leahy, "We want to get passed any misunderstanding that has been created".

Tesco chairman David Reed added "leave it with us" when asked when the company will be prepared to engage in talks.

After the meeting, McLaughlin told Reuters, "We have been asked to leave the matter with the company for them to consider. I am happy to take the company at its word and I do hope the response is a positive and speedy one in favour of dialogue.

Meanwhile, chef Hugh Fearnley-Whittingstall, put forward a resolution concerning chicken welfare, but this was not passed, only receiving around 9 percent of votes at the meeting.

Fearnley-Whittingstall, backed by animal welfare charity Compassion in World Farming had raised over 86,000 pounds to put forward the special resolution to get Tesco to improve its chicken welfare standards.

Tesco had argued that moving to his plan would add over one pound to the price of an average chicken.

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