What: John Lewis Partnership, owner of the John Lewis department stores and Waitrose, has agreed a landmark recognition deal with Usdaw as UK employment law changes give trade unions increased rights of workplace access.

Why it is important: The deal formalises worker consultation at an employee-owned retailer under cost pressure, without extending to pay. It sets a template for how large UK retailers can accommodate unions on their own terms.

The John Lewis Partnership, owner of the John Lewis department stores and Waitrose, has agreed its first collective bargaining agreement with a trade union in almost 100 years. The deal is with shopworkers' union Usdaw and covers collective consultation on issues such as redundancies, health and safety, equality and training across the Partnership. Staff terms and conditions, including pay, are excluded.

John Lewis chiefs moved proactively as changes to employment law introduced by the Labour government come into force, giving trade unions increased rights to workplace access. The decision will likely increase the chances of other big retailers following suit. Usdaw, which has longstanding relationships with some other big retailers, notably Tesco, urged them to engage with it.

Chair Jason Tarry said the agreement will sit alongside the Partnership's commitment to democratic principles and complement its existing democratic structures, with the Partnership Council and forums remaining the cornerstone of employee voice. Usdaw general secretary Joanne Thomas said the union already has members in the business and looks forward to growing its membership and finalising how the agreement will work in practice. Employees are under no obligation to join Usdaw and remain free to join any union.

IADS Notes: The new agreement's scope over collective consultation on redundancies comes as John Lewis Partnership simplifies its head office, with redundancies so far affecting under 1% of the workforce. Chair Jason Tarry has said further cuts are not a one-off, with redeployment and natural wastage preferred and departures a last resort (Drapers, September 2026). Cost pressure is set to intensify ahead of the UK Budget. Tarry names business rates as the Partnership's largest cost, ahead of rent, and warns that a further tax rise on large stores would push retailers to look first at their most expensive operations, their stores (Drapers, October 2026).

John Lewis strikes landmark trade union recognition deal