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Shell is forcing us out of work, say forecourt owners

 
Biofuel rule for cars will cut greenhouse gases

 
US trade deficit hits record after Boeing strike and hurricanes

 
Bush drops drilling plan for Arctic wilderness

 
Oil imports continue to outstrip exports as the trade gap narrows

 
Ousted Shell boss cleared over reserves scandal

 
Republicans turn on the oil industry as petrol prices soar

 
Over a barrel

 
UK suffers record oil trade gap

 
Running on empty

 
Azerbaijani ruling party claims victory in parliamentary elections

 
Washington focuses on oil profits

 
IEA forecast of future oil price rises by a third

 
Simon Tisdall: Democracy and oil fight it out for the future of Azerbaijan

 
Azerbaijan opposition activists arrested on eve of election

 

 
 
The Guardian: Shell is forcing us out of work, say forecourt owners: Monday 14 November 2005

 *
Franchisees told to take over six stations or quit
 *Frustrated staff condemn 'unmanageable' workload


Terry Macalister
Monday November 14, 2005
The Guardian
 
Hundreds of self-employed businessmen and women who manage Shell's 600 petrol stations around Britain face losing their jobs under a radical shake-up of the network.

Managers have been told they must either quit their mainly single-forecourt operations and take on clusters of six, or leave the franchise. Shell claims the stations are selling more petrol but profits remain slim.

The oil group's move comes at a time when drivers are paying high prices for fuel but oil companies say this is due to increased crude prices and high fuel taxes rather than profiteering.

Some Shell station managers contacted the Guardian to say they were frustrated and saddened that they were in effect being forced out of their jobs by too onerous operating and financial conditions. "I was angry at the beginning and then upset but now I have just accepted I must take this on the chin. I wanted to stay and finish off my career with Shell but I can't," said 52-year-old Pam Martin.

She had tried in the past to run two sites at the same time but found it tough, if only because of staffing problems. "Remember these sites are open between 16 and 24 hours a day, seven days a week. When a member of staff fails to turn up one morning you tend to do it yourself. Imagine what it would be like with six sites. It makes me sick even to think of it."

Ms Martin has spent 14 years working at a Shell station but in January will leave her post at the Castle View site near Denbigh in north Wales, as will Donna Rose at nearby Rhyl. "I am out of here in three weeks' time. I looked at the conditions that Shell required in terms of a £100,000 bank guarantee and a £100,000 personal guarantee and decided it was far too much," said Rose.

Rose believes that the reorganisation is just a cost-cutting exercise that is unworkable in rural areas, where petrol outlets might be 30 miles apart from each other. "They [Shell] have already cut the budget for shop and forecourt cleaning but trying to say that this was against customer needs is like banging your head against a brick wall."

Shell accepted that some of its franchisees on these company-owned sites would inevitably not want to take on the extra responsibility and commitment but the company denied that the move was about reducing costs.

Simon Grimsell, Shell's retail sales manager for Britain and Ireland, said: "I fully acknowledge this will not be for everyone but we are confident that this model can be successful because we have similar ones operating in New Zealand and Norway. It has led to improvements."

The company has been engaged in a long period of consultation with franchisees and had given them a long period of notice about the changes, which come with significant rewards. A commission is paid on every litre of fuel sold and shop takings are shared 50/50. There are also allowances for operating costs, including staff and supervisors.

There are now 370 owners running the 600 sites and while 250 of these wanted to go ahead with the new "cluster management" scheme, only 117 were selected.

Shell denied that the remainder would therefore automatically lose their jobs. It said some might be participating in some of the partnerships being formed to take over some of the six-site clusters. Others might be hired as supervisors.

The oil company declined to say what level of profit it was making from selling petrol but said competition from supermarkets and others made the market "highly competitive". It said fuel retailing was a growth sector with overall sales making double-digit growth annually for the last four or five years.

The move is the latest in a series of initiatives by the Anglo-Dutch group to streamline operations following the oil reserves and management turmoil of 2004.


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