KBR Announce Changes To Staff Terms & Conditions
 KBR Production Services in Aberdeen and Leatherhead have outlined the alterations to staff terms & conditions considered to be an ongoing international "belt-tightening" exercise. Bob Keiller, managing director of KBR Production Services, met with employees last Thursday in Aberdeen to end speculation about sweeping alterations such as wage cuts, plus more job losses in Aberdeen after 12 recent redundancies.
KBR worldwide is seeking to remove up to £50million annually in operating expenses, but Mr Keiller said his operation was getting off lightly compared to some other parts of the world. The 600 contractors for KBR Production Services in Aberdeen will not be affected by the changes, neither will the majority of the 1,200 staff employed in the North Sea.
:: The final-salary benefit scheme, which has already been closed to new employees for the last two years, is to be frozen. Existing members will no longer be able to contribute into the fund, but it will continue to function. The scheme is said to be operating healthily at the moment, but the decision to close it to any further contributions is to prevent any major liability building up in the future. Future pension contributions from employees in this fund could go into the existing money-purchase scheme, a less attractive option financially.
:: An additional two and a half hours is being added to the working week which will take it to 40 hours. KBR stated they would aim to be as flexible as possible with staff. The company currently operates a compulsory one-hour lunch break, however it is proposed workers will be able to reduce this to 30 minutes, so they do not have to spend any additional time in the office as a result of this change. Employees will not be paid extra for these hours, so they will in effect be receiving a 6.6% pay cut.
:: There will also be changes to the sickness benefits scheme. Staff would still be entitled to full pay for the first month off, 75% of pay for the next five months and 60% of pay for long-term disability (taking into account state benefits).
:: New employees, and those who joined the company recently, will be entitled to more holidays. For each year of service completed, one additional holiday will be earned up to a maximum of five days from a starting base of 20 days.
:: Car allowance currently offered to in excess of 100 employees is to be restricuted to 150 recipients. All fuel cards are to be withdrawn.
:: Private medical insurance to continue being funded 100% by company. Those joining the company post June 2004 will pay cost of dependant cover.
Mr Keiller said his business was operating in a competitive market. "We have been taking a lot of measures over the past two years to make ourselves more competitive. We have been winning a lot of orders in the UK and abroad and have no shortage of work going forward."
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Posted 20/12/04
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