This is our truth, tell us yours
The news that Tesco have lost billions of pounds in one year illustrates both the depth of the crisis they face, and the fact that they have learned nothing, still.
Tesco are approaching the crisis that is their failed business model in best, hairshirt fashion. Senior management have been culled. Stores have been closed and new openings abandoned. Huge losses have been generated by re-valuing properties and writing down assets. And, meanest of all the financial engineering intended to make it look as if something is being done, staff pensions are to be slashed, going from defined benefit to defined contribution and ensuring that staff pay the largest price for losses caused by decisions taken far above their heads.
Next year, and the year after, Tesco will show a profit enhanced by this year’s bloodletting, and senior managers will demand bonuses and pay rises. Defined benefit pensions won’t be reinstated though, and, for the majority of its staff Tesco will remain a low wage employer.
That isn’t good enough.