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Hoyer UK delivers labour cost warning
Page 9
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dy C.nvistopner Walion
HOYER UK, one of the sub-contractors at the centre of the pay dispute for Shell tanker drivers this summer, has spoken out, outlining its -significant concern" over the pressures on its cost of labour.
In its annual filings to Companies House, Hoyer UK Limited part of European chemical logistics specialist Hoyer Group said the "imbalance between demand and supply for the highly skilled workforce needed to run our business had eased".
However, the directors' report goes on to say: "The industrial relations environment and pressure on our cost of labour, at levels well above inflation. without a corresponding improvement in efficiency or productivity, remain a significant concern." Hoyer UK posted a 2% rise in turnover to fl 10m for the year ending December 2007, hut pre-tax profits fell by 9% to £1.05m from £1.16m in 2006.
The average number of drivers the company employed also fell by 2% to 1,121.
Some 600 drivers, working for Shell through Hoyer I3K and SucklingTransport. caused major disruption to garage forecourts throughout the country in June with a four-day strik e before accepting a pay increase of 14% over two years Hoyer UK also said the UK remained a "challenging and turbulent operating environmentand its operations in the chemical market had suffered from a delay in recovery of significant increases in its unit costs for fuel, while its air gas businesses had felt the effects of reduced volumes,