Union's Tesco challenge defeated

Tesco shareholders have converged on Glasgow for the meeting

Tesco shareholders have voted against a motion to end the alleged exploitation of workers in firms supplying meat to the supermarket group.

The Unite union's motion was backed by 11% of shareholders at Tesco's annual general meeting in Glasgow, while a further 7% abstained.

A Unite spokesman said it had predicted no more than 5% support.

Tesco's board had opposed the motion, saying the firm's guidelines already ensured sufficient protection.

In a statement, Tesco's board said the company's guidelines went "far beyond the legal requirements and ensure all workers are treated fairly and without discrimination".

The board also says that an independent inquiry into employment practices in the meat and supply chain is already underway, conducted by the Equality and Human Rights Commission, which is the most appropriate way of addressing issues of concern.

Union survey

Unite says this is the first time that a UK union has had a resolution adopted at a shareholder meeting of a major company. It said the motion received more support than it had expected.

"An unmistakable message has been sent to the board," said Unite deputy general secretary Jack Dromey. "Tesco must hear the voice of workers in the meat industry and now a growing number of its own shareholders."

The union says contract workers in the supply chain experience "harsh and divisive" conditions.

According to Unite, structural discrimination exists in part of the supply chain, with contract workers experiencing inferior conditions to permanent staff.

In a survey of 48 meat factories, the union claims to have found that more than half used agency labour all year round, who were paid on average 38 pence less an hour than permanent staff.

And while 60% of permanent staff were born in Britain, 80% of agency workers were born overseas.

About 40 protesters staged a demonstration outside the meeting, urging shareholders to support the motion.