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Reuters: UPDATE 1-Shell reaches wage deal for Pernis refinery

Wed Mar 5, 2008 5:08am EST

AMSTERDAM, March 5 (Reuters) – Anglo-Dutch oil giant Royal Dutch Shell Plc (RDSa.L: Quote, Profile, Research)(RDSb.L: Quote, Profile, Research) said on Wednesday it had reached a wage agreement with unions for its employees at its Dutch Pernis refinery and its Moerdijk plant.

Shell said in a statement salaries will increase by 5.5 percent this year and 3.5 percent in March next year under a deal that affects 2,100 employees at Pernis, Europe’s biggest refinery, and Moerdijk, where Shell processes chemicals.

The wage agreement runs until March 1, 2010, and is conditional on employees’ approval, Shell said.

There had been fears the workers might threaten a strike after trade unions rejected an earlier offer.

Pernis can process 412,000 barrels of oil a day and Shell has said it is considering investing 1 billion euros ($1.52 billion) in the plant over the next five to seven years, partly aimed at improving the refinery’s reliability.

(Reporting by Gilbert Kreijger, editing by Elizabeth Fullerton)

© Reuters 2008 All rights reserved

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