| Unions at Shell call off strike |
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Royal Dutch Shell and Dutch labour unions CNV and FNV reached a consensus on pension reform which brought an end to the strikes by the Shell employees on Thursday. Workers belonging to both the unions arrived at a compromise at Pernis.
As per the agreement, workers will return to work at the 418,000 barrel per day Pernis refinery in Rotterdam, which is Europe's largest refinery, and another petroleum processing facility in Moerdijk.
According to a spokesperson for the CNV Chemie union, Shell has agreed to allow workers to retire at the age of 60. The workers will begin paying pension fees from January 1 of 2006. RDS wanted the workers to start contributing to their retirement funds and also delay their retirement. Both parties agreed to this solution.
Earlier, Shell had suggested raising the official retirement age to 65. Following this statement, Shell's production in the refineries was down by 50 per cent as union members struck work for three days. It had the potential to severely affect the fuel supplies in Europe. Unions representing staff of 600 at Pernis refinery were opposed to any change in the company's present pension scheme.
After the compromise, FNV spokesman Egbert Schellenberg said: "We have a deal." while Evert Jan van de Mheen, negotiator from the CNV union said: "Shell has met the demands of the unions to offer workers the opportunity to retire at around 60." In a statement issued by Shell management the company was quoted having said that it was pleased with the result.
Pensions had become a sore point in the Netherlands as the government had abolished tax benefits last year for traditional early retirement schemes and enacted tougher clauses for unemployment and work disability benefits.
Meanwhile, oil traders heaved a sigh of relief. One of the traders said: "The strike had a small impact on fuel oil barges last week. Now it won't affect the market at all, I think."
Full production is expected to reach by Friday evening with work back in full swing.
Posted
on : Sat, 05 Nov 2005 01:35 GMT | General News
By : Rob Davis
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