Deliveries to Tesco stores in Yorkshire and the north east could be under threat due to a pay dispute at the company’s Doncaster DC, a union has warned.

Unite said pay talks have been ongoing for three months at the site, which employs 580 warehouse staff, but have now stalled due to an unacceptable offer.

While the union did not disclose what has been tabled by Tesco, it said it was seeking a settlement in line with the current Retail Price Index, which is running at 3.5%.

The trade union is preparing to ballot its members about industrial action up to a full strike.

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Unite regional officer Harriet Eisner said: “While we are some stages away from strikes becoming a reality, such action in the run up to Christmas would hit deliveries to Tesco stores in Yorkshire and the north east at a time when competition amongst the supermarket giants is at its most intense.

“Tesco is a highly profitable company that can well afford a generous offer to its hardworking Doncaster workers, given that in April the supermarket giant unveiled a 28% rise in operating profits in the year up to February 2018," she said.

In a statement, Tesco said: “As part of our annual review process, pay negotiations are currently underway at our Doncaster DC. These discussions are ongoing at this site and we are working hard to reach agreement with Unite.

“We offer all our colleagues a fair and competitive reward package which is sustainable and recognises the valuable contribution they make. We will continue to engage with the committee on this issue as we believe having a conversation is the best way forward.”

The Doncaster DC was the scene of a long-running dispute between Tesco and Unite in 2012 after the supermarket group outsourced its site transport to Eddie Stobart Logistics in 2012.

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