Hoyer UK, one of the subcontractors at the centre of the pay dispute for Shell tanker drivers this summer, has spoken of 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 required to run our business had eased slightly".
However, the directors' report continues: "The industrial relations environment and upward pressure on our cost of labour, at levels well above inflation, without a corresponding improvement in productivity or efficiency, remain a significant concern."
Hoyer UK posted a 2% rise in turnover to £110m for the year ending December 2007 but pre-tax profits fell by 9% to £1.05m from £1.16m in 2006. The average number of drivers it employed also fell by 2% to 1,121.
Some 600 drivers, working for Shell through Hoyer UK and Suckling Transport, caused major disruption to garage forecourts throughout the country with a four-day strike before finally accepting a pay increase of 14% over two years.
Hoyer UK also said the UK remained a "challenging and turbulent operating environment" and 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.
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