Tesco says national living wage will cost it £500m by 2020The implication here is presumably that, if resources are transferred from shareholders to people who are paid a relatively low wage, this must be a good thing.
Tesco has said George Osborne’s new ‘national living wage’ will cost it £500m by 2020, putting further pressure on profitability at Britain’s biggest supermarket.
The current Tesco boss, Dave Lewis, said focusing on profits had led Tesco to make bad choices for staff as well as customers. ‘On behalf of myself and the team, the only thing we can say for the choices we made is sorry.’ (The Guardian)
No wonder the share price has been falling if the CEO says, in effect: ‘Sorry we have been trying to make profits for shareholders.’