Now it's Obama versus Tesco!
Tesco has a positive reputation among British trade unions, and among the HR profession in general. But since Tesco has opened up an American operation called Fresh & Easy, it's come in for a whole lot of grief. It's refused even to meet, let alone recognise, the United Food and Commercial Workers union. It advertised for an HR director, including "union avoidance activities" as part of the brief.
But now the union has a powerful backer: Barack Obama has found time amid his whirlwind schedule to write for a second time to Tesco's boss, Terry Leahy, urging him to sign a partnership with the American unions....
The US union chief has arrived in Britain to head up a protest at Tesco's AGM on friday, bearing a missive on Obama notepape, dated 23 June and which reads pretty feistily to me. The "Dear Sir Terry," line at the beginning is about as friendly as it gets.
"I strongly request that you revisit that decision," says the US presidential front runner, and warns that workplace rights will have a prominent place in the Democratic election campaign. "I again urge you to reconsider your policy of non-engagement in the United States," writes Obama.
Union rights are a big financial issue for companies in America because where people get them the usually get healthcare and pensions as well: that's why US unions - to the amazement of their British counterparts -are able to charge high dues as recruit hand-over-fist once an agreement is reached. It is one of the reasons firms in entire sectors tend to resist union membership - and the unions in turn have very effectively targeted entire industries, starting with the investment banks and pension funds that hold the shares.
Ominously for Tesco, the person who alerted me to this development and sent me the copy of Obama's latest letter, is a pension fund CSR guru. The AGM should be interesting.
Plus in a week where Labour has come under scrutiny from the opposition for its relationship with unions at a time of pay restraint, it's refreshing to see how openly these things are done in America: the US unions were, of course, major backers of the Obama nomination campaign.
Comment number 1.
At 25th Jun 2008, dennisjunior1 wrote:Thanks Paul Mason:
Interesting match-up...
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Comment number 2.
At 26th Jun 2008, thegangofone wrote:Does McCain have a position on this?
It would probably say an awful lot even if he did not answer?
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Comment number 3.
At 27th Jun 2008, threnodio wrote:In some ways, Tesco have had it easy. All they have had to do in eastern Europe, for example is throw in a heap of money and create lots of job. State medical care schemes are in place employment rules are enshrined in statute.
In the States, its a whole different ballgame and whether or not they succeed will have a lot to do with public perceptions. If they were opening an up-market fashion outlet on Fifth Avenue, maybe they could afford to tell the unions to go whistle, but doing so in the American heartland might not be so clever.
The 'we are only interested in your money' attitude might not cut too much ice in a market where there is a lot of competition. They should certainly look at positive engagement with the unions, if only from a PR perspective.
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Comment number 4.
At 28th Jun 2008, NickThornsby wrote:I was at the AGM yesterday Paul, and a couple of questions on this were raised. Terry Leahy's response was pretty pathetic. He basically said that all tesco employees have the right to join the union, despite evidence that they have done their best to stop this happening.
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Comment number 5.
At 30th Jun 2008, U2898892 wrote:c
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Comment number 6.
At 30th Jun 2008, U2898892 wrote:Tesco will not change its policy on selling battery chickens. Consider this, obese from non-stop eating of inferior foods, caused by boredom and constant lighting. Weak legs from lack of exercise, and medicated with hormones and antibiotics. If this sounds familiar, it isn't just a metaphor for the poor hens, it is also the humans who eat them. We are indeed only what we eat!
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Comment number 7.
At 1st Jul 2008, threnodio wrote:I dare say, MightyAngela, but are they allowed to join a trade union?
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