SUPERMARKET giant Tesco is facing an employment tribunal brought by more than 60,000 shop workers over claims that it helped set the “market rates” used to justify lower wages. 

The tribunal began hearing Tesco’s defence today for paying store staff less than distribution centre workers. 

Shop workers say Tesco cannot defend the pay disparity because it followed market rates, given the supermarket is Britain’s largest private employer and influenced those same pay norms.

Store workers, who are predominantly female, have historically received lower pay than their mostly male colleagues in distribution roles, despite the roles being assumed to be equal value.

Tesco’s defence rests on the assertion that store and distribution workers are recruited from different labour pools, with different “market rates” of pay. 

The claimants say this does not legally justify the income gap, arguing Tesco had extensive control over how pay was set in the first place.

They also allege that Tesco’s reliance on cost as a justification is misplaced, arguing that the additional cost of paying store workers more is not a sufficient legal basis for unequal pay.

Lawyers at Leigh Day, representing more than 17,000 affected workers, say the outcome could have significant implications for equal pay claims across the retail sector.

Paula Lee, of Leigh Day, said: “These hearings go to the heart of why Tesco is paying its store workers less than their colleagues in distribution.

“[Our clients] believe the evidence will show that there is no lawful justification for continuing to pay predominantly female store workers less for work of equal value and that this is a moment of real accountability after years of litigation.” 

A judgment is expected later this year. 

Tesco was approached for comment.