Union

Dear Mr Pollock
2009 Proposed Wage Freeze – All Contracts
I have been advised by my shop stewards across the country and on a number of contracts that it is your intention not to provide or offer any form of wage increase to wages for all tanker drivers for the year 2009. This is difficult to understand or accept for the following reasons:


• DCC Energy, which is DCC’s largest division, achieved exceptional profit growth reflecting the successful integration of a number of acquisitions in the financial year ending March 2009, including Chevron’s UK oil distribution service. The Chevron UK oil distributor business, has according to preliminary results ‘performed well ahead of expectations.’ This was reflected in part in the increase in revenue from €3,420.0 to €4,130.8m, an increase of 20.8 percent.

During the financial year operating profit increased by 35.5 percent to €100.7m. this was due in part to a more favourable product cost environment than in recent years and a particularly cold winter. The Group’s operations are significantly second-half weighted primarily due to a portion of the demand for DCC Energy’s products being weather dependent.
The company’s oil business in Britain benefited from continued operating cost efficiencies derived from the growth of its infrastructure.
In the Preliminary Results for year ending March 2009 it noted that the operating cash flow was exceptionally strong at €129.0m in 2008. Therefore the contribution of DCC Energy decrease in working capital from (101.6) to
72.3 can only be described as exceptional as well, contributing to an increase of €206.1m in free cash flow.


However even after the exceptionally strong performance in the year to 31 March 2009, DCC energy still expects operating profit for the year to 31 March 2010, on a constant currency basis, to be broadly in line with the prior year, as it is anticipated that the weather pattern and the product cost environment will not be as favourable.


Therefore, I would be obliged if you would treat this letter of request for a national meeting with myself as the National Secretary, along with the Unions’ National GB Oil/DCC Energy Co-ordinating Committee which is made up of approximately 15 key senior union representatives covering most of your contracts.


May I equally add that to the best of my knowledge that you are the only company in distribution in the oil sector to attempt to achieve a zero increase within the UK this year.
I look forward to receiving your response.


Yours sincerely

Ron Webb
National Secretary, Transport