More drivers TNT s l aps on pay f reeze
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for Tankfreight
• NFC subsidiary BRS Tankfreight is to employ 54 new drivers after winning a £20 million distribution contract from lubricant giant Castrol.
A fleet of 42 tankers will take over the transport operation by next July. They will transport packaged and bulk lubricants to consumer and industrial customers nationwide.
"The five-year contract has begun already, but it will be phased in and there's a lot of work to be done before everything is completely implemented in July," says NFC.
The company is also taking over the running of Castrol's 9,300mfactory in Warrington through its Exel Logistics subsidiary.
Castrol's distribution to shops and industry was previously carried out by a network of smaller hauliers at local level.
BRS Tankfreight already distributes bulk lubricants for Castrol from plants in Watford and Stanlow. by Karen Miles and Amanda Bradbury • Unions at TNT this week informed staff of a pay freeze after a tough negotiating round where management warned there was no room for increased costs.
Drivers for TNT Express, TNT Contract Distribution and TNT Newsfast have been told that a wage increase has been ruled out for 1993/94 to retain the company's competitiveness. However, a package of other benefits will be introduced; it is believed to include increased sick pay and a new contribution by the company into a pension fund.
Commenting on the pay freeze, TNT Express (UK) managing director Alan Jones says: "We haven't been able to improve our margins We're moving more freight in the next-day delivery area and we have more customers, but some of our bigger customers have downgraded. It's therefore not competitive to give any wage increase this year."
TNT's financial results are due soon and Jones says the UK business will make a profit—he claims TNT remains one of the most profitable companies in the road transport industry and the pay freeze will enable it to hold that position.
Although the pay talks were negotiated separately for the three divisions, drivers in all three sectors will accept roughly similar deals. The agreements were struck finally last week with the Transport and General Workers Union after three months of negotiation.
But the pay freeze represents a strong reigning-back at TNT Last year a £6-a-week rise was agreed for its 5,400 drivers, warehouse staff and clerical workers.
There was also agreement to end the blanket union deal in favour of separate deals for the parcels, contract distribution and newspaper distribution divisions.