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South Africa union Solidarity warns BP against oil worker wage freeze

SOUTH African trade union Solidarity warned on Friday that it had received no indication that BP subsidiaries would seek to annul wage agreements.

The oil giant announced last week that it would freeze wages for 83,000 employees world-wide this year because of a 50 per cent slump in oil prices.

But Solidarity senior organiser Gerhard Cloete said the union had not received any formal notice of companies seeking exemption from the current wage agreement.

BP Southern Africa directly employs 1,000 people, mainly in Johannesburg, Cape Town and Durban — delivering fuel to over 500 BP service stations.

It and 11 other companies signed a two-year wage deal last year with three unions including Solidarity. 

The agreement provides for an inflation plus 1.5 per cent pay increase from June 1, with a guaranteed minimum rise of 6 per cent.

BP was the first company to announce a wage freeze as the oil price slump prompted cuts.

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