AROUND 40 jobs at a Gwent supermarket distribution centre look set to be farmed out to a contract cleaner.

The ancillary workers at Tesco's Magor distribution centre can either leave Tesco, transfer to other roles or keep their jobs as an employee of Mitie, the new agency, under the plans announced by Tescoy.

Tesco workers who opt to join the agency could also lose benefits such as free shares, discounts, holiday pay and have their pension funds frozen.

They were also told that Tesco would sustain their current salary for two years, after which they would fall in line with agency wages.

Tesco spokesman Adam Fisher said: "I can assure you that wages will not lower, but it would seem likely their pensions would after some time change."

This could affect those workers in their late 50's and early 60's who were relying on having their Tesco pension right up to retirement.

One worker said: "For those older workers nearing retirement it would be better to offer them redundancy, but Tesco isn't offering this as an option."

Redundancy cannot be offered when TUPE (Transfer of Undertakings, Protection of Employment) rules apply, when work is being transferred between companies, because the company has specifically chosen to transfer contacts rather than opt for redundancy.

Mr Fisher added: "Employees can join the new employer's pension scheme which they have to put in place, in accordance with minimum legal requirements."

USDAW is the only union Tesco officially recognises and most employees are signed up to.

Paul Adams, USDAW area organiser, said: "Tesco has made a business decision to tender the cleaning contracts out to a third party."

Mr Adams pointed out that USDAW will now enter into TUPE consultations with Tesco to iron out the details of the next stage.