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Fuel drivers offered 14% pay rise | Fuel drivers offered 14% pay rise |
(about 1 hour later) | |
Tanker drivers delivering fuel for Shell have been offered a 14% pay increase over two years after their four-day strike hit UK fuel supplies. | |
The increase will be worth 9% in the first year and 5% in the second, taking average annual earnings to £41,750. | |
Drivers and union officials rejected an earlier offer of about £36,000. The union representing the drivers, Unite, has urged them to accept the new offer. | |
The strike affected petrol stations and oil depots across the UK this week. | |
It was called after drivers and union representatives failed to agree terms with two haulage firms, Hoyer UK and Suckling Transport, which are contracted to Anglo-Dutch oil firm Shell. | |
The drivers had threatened to hold a second round of strikes starting on Friday had an agreement not been reached. | |
Drivers will now be balloted on the deal and are expected to give their verdict by the end of this month. | |
Restocking pumps | |
The government has warned about inflationary pay rises, but said this deal was "particular" to the industry. | 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." | 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." |
The deal affects the pay of about 600 drivers | |
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. |
The stoppage by about 600 drivers 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. |
Details of the settlement were given to drivers on Wednesday. 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. | |
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. |
'Inflation target' | |
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 the BBC. | |
His comments come a day after the latest UK inflation data showed the annual rate rose to 3.3% in May, up from 3% in April and well above the target of 2%. | |
Bank of England governor Mervyn King has warned that rising food and energy prices could push UK consumer inflation above 4% this year. |