Northumbria University Newcastle Tyne Management Paper

Tesco is facing a landmark lawsuit over allegations that migrant workers were forced to work 99-hour weeks on illegally low pay, making jeans for the supermarket giant’s F&F fashion brand.A group of 130 former employees at VK Garment Factory in Thailand are suing Tesco and auditing specialists Intertek for “alleged negligence and unjust enrichment”.The allegations, which were first reported following an investigation by The Guardian, were made by workers who produced jeans, denim jackets and other F&F clothing for adults and children for the Thai branch of Tesco’s business between 2017 and 2020.VK Garment Factory is in Mae Sot, a city near the Myanmar border, which developed a workforce of predominantly Burmese migrant workers.The employees have already pursued a claim in Thailand against the factory.In the UK legal case, led by law firm Leigh Day, it is claimed that the migrants were paid at most around £4 a day, working seven days a week, and were “trapped in a cycle of forced labour”.Bosses controlled their migrant worker permissions and housed them in poor conditions such as sleeping on cement floors with little or no privacy due to there being no locks, walls or ceilings, it is alleged.The employees claim they had to work from 8am to 11pm Monday to Saturday, and on Sundays were permitted to finish work at 5pm unless orders meant they had to work longer.The legal claim said that, despite both Tesco and Intertek carrying out audits at the factory, the unlawful activities that are reported to have been taking place were not identified.Tesco was not involved in the day-to-day running of the factory but the supply chain workers are nevertheless bringing the case directly against the business.Sources: Consider the above story and address the following questions:a) How do you think this story will affect Tesco’s corporate social responsibility performance?b) What would you suggest to help Tesco prevent such incidents in the future?c) What are other recommendations for Tesco to improve its sustainability performance from the procurement perspective? You should address each of the questions above using the teaching material/lectures along with selected references from the reading list as appropriate.