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JAM | Feb 4, 2022

Tanker drivers, employers settle longrunning pay dispute

/ Our Today

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Daryl Vaz, minister of science, energy and technology.

Jamaican tanker drivers and their employers have finally settled their longrunning pay dispute, dating back to 2013.

A settlement to the dispute was brokered by a Joint Petroleum Working Group (JPWG), appointed by Minister of Science, Energy and Technology, Daryl Vaz.

The group, headed by Wayne Chen, chairman of Petrojam, was established on October 14, 2021 by Vaz to finalise recommendation for a minimum economic rate and related improvements to employment conditions for Petroleum Tanker Drivers.

MINIMUM ECONOMIC RATE AGREED ON

The JPWG agreed on the recommended minimum economic rate for tanker drivers, and drafted a Safety Driver Manual for improved training and upskilling, in keeping with international best practices.

The JPWG also agreed on a minimum economic rate of J$1,000 per hour based on the industry norms in relation to hazardous materials and risk factors. This represents a 270 per cent increase in relation to the lowest rate paid to tanker drivers, which equated to about J$370 per hour, or the equivalent of J$14,640 for a 40-hour work week. 

Vaz told Parliament on Tuesday that the agreed haulage contractor and tanker driver rates, which were translated from hourly rates to a per litre per trip basis take into consideration distance covered and volumes transported, are as follows:

RatesRound Town0-19 milesNear Central 20 – 39 milesCentral              40 – 79 milesWestern                   80 miles & above
Haulage Rates (J$/Litre) *Basis for the rates$1.20$2.00$2.50$4.00
Tanker Driver(J$/Litre) NEW$0.20$0.32$0.39$0.62
N.B. These rates, which were derived competitively, do not include General Consumption Tax (GCT).

Since 2013, wage negotiations between tanker drivers and the Petroleum Haulage Contractors’ Association (PHCA) have been stymied, due to the dissolution of the PHCA. The PHCA was responsible for ensuring equitable haulage pricing mechanisms, ensuring the capacity for transport across the island, and supervising petroleum loss reduction efforts. 

Vaz established the JPWG comprising representatives from the Marketing Companies, Haulage Contractors, Tanker Drivers, UCASE, Ministry of Finance and the Public Service, Ministry of Labour and Social Security, Ministry of Transport and Mining, Minister of Science, Energy and Technology, the Fair Trading Commission, the Jamaica Gas Retailer’s Association, the Jamaica Association of Petroleum Marketers and Petrojam.

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