by Juliet Parish • Oil company Conoco is threatening to
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contract out its haulage unless its 211 drivers accept a pay cut which drivers fear will amount to 20%.
It is understood that an in-house study has shown Conoco could cut its transport wage bill by more than 30% by contracting out its nationwide distribution.
It has already shortlisted two hauliers—P&O Roadtanks and Wincanton—to handle the work if talks with its drivers collapse. Four other tanker operators tendered for the haulage of oil products to Conoco's Jet retail outlets and to commercial sites.
Conoco has told its drivers it wants to keep haulage in-house where it has a tight control. But it has made it clear that drivers will have to lose productivity pay in favour of what unions say is a token increase on basic rates.
The Transport & General Workers Union says its members are furious. It says 98% of the drivers who attended a mass meeting last month rejected the pay cut they were asked to accept. The TGWU says that if it cannot come to an agreement with Conoco and the work is contracted out, the drivers should also be transferred: it believes that the drivers would be covered by the Transfer of Undertakings regulations.
Conoco refuses to speculate on the outcome of the pay talks.