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Mobil pays 20% small profit
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/ Two weeks after BP tanker drivers settled for a 35% wage increase, Mobil Oil has now reached a new pay and productivity deal with its drivers which boosts their basic rate by 20% and raises average earnings to almost £17,700.
However, unlike the BP agreement (CM, July 26), the Mobil deal does not involve any redundancies in the company's 180-strong driver workforce. It provides for a £40 increase in weekly basic rates from September 1, with overtime and shift payments remaining unchanged.
The latest increases comes on top of a 4.75% rise in basic earnings for the company's tanker drivers in May, and a £5 a week increase achieved last August for interim productivity improvements.
Under their latest deal Mobil drivers will be on a basic rate of £12,460. However, with added overtime and shift allowances the average earnings will be £17,689. BP drivers are on an average of £17,621.
In return for the extra money, Mobil has negotiated a number of productivity changes including improved delivery times and a review of all work patterns and the use of automated equipment.
In addition, all Mobil vehicles below 32.5 tonnes will be phased out and replaced by contracted-out deliveries. But according to Mobil manager Mike Churn this work accounts for less than 10% of its fleet business and will not result in any major contracts for outside hauliers.
The productivity package also provides for the operation of 40 tonne GCW vehicles when legislation permits.
Unlike the recent BP agreement, the Mobil pay and productivity deal has gone through with full approval from national officials at the Transport and General Workers' Union.
NFC Tankfreight drivers employed on the Texaco distribution contract are on an average of £15,600 a year, including productivity pay, overtime and shift allowances. Their weekly basic rate is £186.
The recent settlements by BP and Mobil place their drivers at the top of the earnings league according to the latest issue of IDS Report — the journal of the pay and research company Incomes Data Services.
Shell is currently negotiating a new pay and productivity deal with its drivers which could also result in similarly high wage increases.