• Tesco is to slash rates for staff working Sundays and bank holidays
  • The supermarket has been locked in talks with USDAW to agree a deal
  • The move comes as Tesco scraps 24-hour shopping at 76 of its stores nationwide

Supermarket Tesco is set to slash pay rates for working Sundays, bank holidays, late nights and overtime as it seeks to cut costs.

Employees that currently get paid double time for working Sundays and bank holidays will be told tomorrow that they will now receive time and a half from July – a 25% pay cut.

Higher pay rates for overtime will also be withdrawn, with extra hours paid at the standard rate, according to The Mail on Sunday. Premium working hours from 10pm and midnight will also be revoked as part of the far-reaching pay review.

Tesco has been in talks with USDAW to thrash out a deal.

A Tesco spokesperson told the newspaper: "We have reached a positive agreement on a two-year pay and benefits package for store colleagues, which is one of the most competitive packages in the supermarket industry and is good news for the large majority of colleagues.

"We will announce details of the deal once we have spoken to colleagues about the changes. Any colleagues out of pocket from the premium changes will be given advance notice and earnings will be protected for up to two years."

The move comes after Tesco revealed it was to scrap 24-hour trading at 76 of its 400 stores that open all hours. The initiatives are part of Tesco chief executive Dave Lewis’ drive to cut costs at the retailer as he vies to improve its balance sheet.