Tesco comes under fire again

Thursday, 28 June 2007
Tesco has come under renewed fire on two fronts as it gears up for its annual general meeting on Friday.

Anti-poverty charity War on Want is criticising the retailer over the amount it pays clothing workers in Bangladesh, while Friends of the Earth has attacked the company over its claim that most people support the opening of a new Tesco store in their area.

War on Want company secretary Ben Birnberg – who holds shares in Tesco – has put forward a resolution to the AGM calls for supplier factories to undergo independent auditing to ensure decent pay and conditions for employees.

He claims Tesco pays workers in Bangladesh 5p an hour to produce clothes for its British stores.

Tesco is recommending shareholders vote against the resolution, which War on Want says has won support from more than 100 shareholders, including the Joseph Rowntree Charitable Trust, an independent organisation which holds close to a million shares.

Shareholder activist group PIRC is advising shareholders to abstain from voting.

Birnberg said: "If Tesco is genuine about its ethical pretensions, why are its directors advising shareholders to vote down my resolution?"

Meanwhile a survey from Friends of the Earth and pressure group Tescopoly claimed that 43% of people in the UK would oppose a new Tesco store, while only 33% would welcome one.

Campaigners plan to attend Friday’s AGM.
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