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Inflation warning after fuel deal | Inflation warning after fuel deal |
(about 1 hour later) | |
The business secretary has issued a warning about inflationary pay rises after tanker drivers working for Shell settled a pay dispute. | |
The deal, worth 14% over two years according to one of their employers, Hoyer UK, came after a four-day strike by the drivers. | |
John Hutton said the deal reflected the particular conditions in the industry. | John Hutton said the deal reflected the particular conditions in the industry. |
He said: "There needs to be discipline in public and private sector pay if we are to keep inflation under control." | He said: "There needs to be discipline in public and private sector pay if we are to keep inflation under control." |
He also thanked the fuel industry for working hard to minimise disruption, "and the driving public for behaving responsibly over the difficult four days of the strike". | He also thanked the fuel industry for working hard to minimise disruption, "and the driving public for behaving responsibly over the difficult four days of the strike". |
"Restocking at the pumps is now under way and we can expect things to return to normal over the next few days," he said. | "Restocking at the pumps is now under way and we can expect things to return to normal over the next few days," he said. |
'Everything we were looking for' | 'Everything we were looking for' |
The stoppage by about 600 drivers working for haulage firms Hoyer UK and Suckling started on Friday and led to hundreds of petrol stations across Britain running out of fuel. | The stoppage by about 600 drivers working for haulage firms Hoyer UK and Suckling started on Friday and led to hundreds of petrol stations across Britain running out of fuel. |
Further industrial action by the drivers, delivering for Shell, was due to take place at the weekend, but was called off after the pay deal was agreed on Tuesday. | Further industrial action by the drivers, delivering for Shell, was due to take place at the weekend, but was called off after the pay deal was agreed on Tuesday. |
John Hutton urged discipline in public and private sector pay | John Hutton urged discipline in public and private sector pay |
Details of the settlement were given to drivers on Wednesday. | |
Hoyer UK director Bernie Holloway confirmed to the BBC that it had agreed a deal worth 14% over two years. | |
Following the pay agreement, one union official reportedly said: "We got everything we were looking for." | Following the pay agreement, one union official reportedly said: "We got everything we were looking for." |
Drivers will be balloted over the pay deal over the coming week. Unite is urging them to accept. | Drivers will be balloted over the pay deal over the coming week. Unite is urging them to accept. |
It was not clear whether Shell was involved in the final settlement, but the firm welcomed the news. | It was not clear whether Shell was involved in the final settlement, but the firm welcomed the news. |
Chancellor Alistair Darling also said the above-inflation pay deal was due to "particular problems" confined to the tanker dispute. | Chancellor Alistair Darling also said the above-inflation pay deal was due to "particular problems" confined to the tanker dispute. |
"Settlements overall over the last 12 months are around 3.5% which is consistent with our inflation target," Mr Darling told Radio 4's Today programme. | "Settlements overall over the last 12 months are around 3.5% which is consistent with our inflation target," Mr Darling told Radio 4's Today programme. |
His comments come as the UK's inflation rate rose to 3.3% in May, up from 3% in April and way above the Bank of England's target of 2%. | His comments come as the UK's inflation rate rose to 3.3% in May, up from 3% in April and way above the Bank of England's target of 2%. |
The Bank's governor, Mervyn King, has warned that rising food and energy prices could push UK consumer inflation above 4% this year. | The Bank's governor, Mervyn King, has warned that rising food and energy prices could push UK consumer inflation above 4% this year. |