Unions Threaten Tesco Development

LONDON -- Tesco, without meaning to, has tipped off the fact that its U.S. venture will attempt to be union free, according to recent reports by the Financial Times, prompting threats from grocery unions in California to oppose the launch and development of the chain.

A union-free workforce would imitate the leading U.S. mass retailers like Wal-Mart and Target, the report stated. However, most of the workers in the traditional grocery retail industry in the United States have union representation.

The report said that Tesco has placed job ads for two senior human resources executives that will be based in the California [HQ] and listed their job responsibilities to include "maintaining union-free status" and "union avoidance activities." However, Tesco told the Times that it had not yet made a decision on unionization.

The ads appeared recently online for an employee relations director, to be based in Los Angeles, and a human resources manager that will work at the planned site for the distribution center in Riverside, Calif., the report stated.

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The company is investigating more than 300 sites for its small grocery/convenience store format, to date, the company decided on nine sites in California, four in Nevada and 18 in Arizona, according to the Times.

Those locations are:

• Los Angeles

• Redlands, Calif.

• Moreno Valley, Calif.

• Indio, Calif.

• Upland, Calif.

• Laguna Hills, Calif.

• Fullerton, Calif. (to open in 2008)

• Fontana, Calif.

• San Diego

• Las Vegas (four sites)

• Phoenix (six sites)

• Avondale, Ariz.

• Gilbert, Ariz. (two sites)

• El Mirage, Ariz.

• Mesa, Ariz. (four sites)

• Chandler, Ariz. (two sites)

• Queen Creek, Ariz.

• Scottsdale, Ariz.