'The scandal of Greedflation continues'

Unite has slammed Sainsbury boss Simon Robert’s ‘bonanza bonus’ as the latest evidence of supermarket profiteering, whilst food prices remain staggeringly high.

The union reported that Roberts got almost £5 million in pay for the last year, as shoppers have faced soaring food bills in the cost of living crisis, highlighting the unions argument that supermarkets are benefiting from profiteering.

Unite general secretary, Sharon Graham, said people are paying the price at the tills, while those in power rake in huge profit.

“The supermarkets have been protesting, claiming they’re not profiteering and contributing to the cost of living crisis. Meanwhile people are paying the price at the tills,” said Graham.

“Simon Roberts’ bonanza bonus tells a very different story. His £5 million pay package is a reward for delivering profiteering profits. Simple.”

The union dismantled the argument, run by certain media outlets and the government, that a fall in some supermarket profits, such as Tesco, in 2022 is proof that they are not engaging in ‘rampant profiteering’, as the union puts it.

However new research by the union revealed that Tesco’s profits had fallen mainly due to revaluation of its property portfolio due to rising interest rates last year, as well as rising ‘administration expenses’, rather than ‘absorbing’ increased food costs from suppliers.

The numbers tell a difference story, Graham has said, of supermarkets continuing to make big profit at customers’ expense.

“The scandal of Greedflation continues,” said Graham of Unite. “Ordinary people are paying the price at the tills and no PR offensive by the supermarket giants can cover that up.

“Our team of forensic accountants has examined their claims that mega profits have dipped as they “absorb” increased food prices. But a deep dive into Tesco’s and Sainsbury’s accounts finds no sign that this is the case.

“Instead, Tesco’s continue to pay out big dividends and any fall in its still high profits occurred mainly due to a revaluation of its property portfolio. Whilst Sainsbury’s gross profit actually increased last year.

“Reckless profiteering is one of the scandals of our age and it’s time our politicians took action to protect the public.”

Food and drink inflation has hit its highest level since 1977 and currently sits at 19.1%, which the Competition and Markets Authority government department has said is down to ‘global factors’.

Hannah Davenport is trade union reporter at Left Foot Forward

(Photo credit: Flickr)

Left Foot Forward’s trade union reporting is supported by the Barry Amiel and Norman Melburn Trust

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