Wednesday, June 18, 2008

UK tanker drivers receive 14 percent pay rise

BoE governor Mervyn King had to write an embarrassing letter to the chancellor after inflation hit a new high of 3.3. In it King states that he expects inflation to reach 4 percent by year end. 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 according to Hoyer UK director Bernie Holloway. Authorities are now pleading for moderation in pay negotiations after official inflation numbers exceed income growth in the private and public sector.

According to Chancellor Darling the "above-inflation" pay deal is due to "particular problems" with the tanker driver's union. Without having more detailed information my guess would be that tight resource utilization is behind this deal, and only slack in employment will prevent an inflation spike higher. Contrary to what authorities claim with oil prices at current levels high inflation is already among us.

a prime example of denial:
"Settlements overall over the last 12 months are around 3.5% which is consistent with our inflation target," Mr Darling told the BBC.

Business Secretary John Hutton on BBC:
It is not the job of ministers to set the pay in the private industry.

The deal with the tanker drivers must not become the norm.

We should all exercise common sense and moderation when it comes to pay particularily over the next couple of years

click for video

video: Hutton on pay 'discipline'
Business Secretary John Hutton has told the BBC that the 14% pay offer for fuel drivers should not set a precedent for other workers.

source: Fuel drivers offered 14% pay rise

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