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Inflation warning after fuel deal Fuel drivers offered 14% pay rise
(20 minutes later)
The business secretary has issued a warning about inflationary pay rises after tanker drivers working for Shell settled a pay dispute. Tanker drivers working for Shell have been offered a 14% pay increase over two years after a four-day strike which disrupted UK fuel supplies.
The deal, worth 14% over two years according to one of their employers, Hoyer UK, came after a four-day strike by the drivers. One of their employers, Hoyer UK, confirmed the details of the pay increase, which drivers will now be balloted on.
John Hutton said the deal reflected the particular conditions in the industry. The union representing the drivers, Unite, has urged them to accept.
He said: "There needs to be discipline in public and private sector pay if we are to keep inflation under control." The government has warned about inflationary pay rises, but said this deal was "particular" to the industry.
Speaking before details of the pay deal were confirmed, Business Secretary John Hutton 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 Details of the pay deal for tanker drivers are yet to be released
Details of the settlement were given to drivers on Wednesday.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. Hoyer UK director Bernie Holloway told the BBC that it had agreed a deal with representatives of the Unite union that was 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.
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.