Decisions - Sick pay - In sickness, in health.

(From Financial Director)

Byline: Neil Hodge.

Last May, supermarket giant Tesco announced it was going to test a Spilot scheme, whereby the company would refuse to pay staff for the first Sthree days an employee was ill.

The retail chain that makes GBP4.4m profit every day, and is on course to Sreport a bumper GBP2bn annual profit, has axed sick pay in some of its Sstores and is testing other schemes to stamp out the 'sickie'. Tesco Smaintains there are fewer absences in stores testing the schemes.

Curiously, Usdaw, the shopworkers' union which represents about half of STesco's 220,000 workers, is co-operating with the plan.

In a letter to union representatives, Usdaw national officer Pauline SFoulkes explained that staff in the 10 stores chosen for the trial were Sasked to co-operate with the trials by volunteering a temporary change of Scontract for 12 months. At the end of the trial, they will revert to their Soriginal contractual arrangements.

Absenteeism is costing UK business GBP11.6bn a year, argues the SConfederation of British Industry. The business lobby group adds that Sworkplace absence in the private sector increased last year for the first Stime in five years. The Chartered Institute for Personnel and Development Ssays that an average absence rate of 12 days costs companies GBP600 per Semployee.