- crown copyright Catalogue Imagc CONFIDENTIAL HIS D O C U M E N T IS T H E P R O P E R T Y OF HER BRITANNIC MAJESTY'S GOVERNMENT C(81) 56 10 N o v e m b e r 1981 CABINET C O P Y NO 82 OIL T A N K E R DRIVERS: CONTINGENCY MEASURES M e m o r a n d u m by the S e c r e t a r y of State for E n e r g y T h i s p a p e r r e p o r t s on the c u r r e n t pay n e g o t i a t i o n s b e t w e e n the f o u r 1. m a j o r o i l c o m p a n i e s ( B r i t i s h P e t r o l e u m ( B P ) , S h e l l , E s s o a n d T e x a c o ) and t h e i r tanker d r i v e r s . T h e T r a n s p o r t and G e n e r a l W o r k e r s U n i o n ( T G W U ) has c a l l e d f o r an a l l - o u t s t r i k e f r o m 16 N o v e m b e r i f the u n i o n p a y c l a i m of 11 per c e n t i s not m e t . T h e p a p e r a l s o e x a m i n e s the o p t i o n s open to the G o v e r n m e n t i n p r e p a r i n g to p r o t e c t the e s s e n t i a l n e e d s of the c o m m u n i t y s h o u l d a s t r i k e take p l a c e . 2. T h e f o u r c o m p a n i e s h a v e b e e n c o n d u c t i n g s e p a r a t e n e g o t i a t i o n s with the u n i o n . W h i l e t h e i r offer of 8.1 p e r cent has been n o t i f i e d to a l l the d r i v e n , o n l y i n the c a s e of B P h a s t h e r e b e e n a v o t e . It i s the v i e w of the management of B P that the o u t c o m e w o u l d h a v e b e e n a m a j o r i t y i n f a v o u r of a c c e p t a n c e . H o w e v e r , at a m e e t i n g of shop s t e w a r d s on M o n d a y , this v o t e was d e c l a r e d i n v a l i d , a p p a r e n t l y on the g r o u n d s that the u n i o n h a d not b e e n a b l e f u l l y to put t h e i r a r g u m e n t s to t h e i r m e m b e r s . T h e shop s t e w a r d s a r e r e t u r n i n g to c o n - sult the w o r k f o r c e on the b a s i s of a v o t e to "accept 8. 1 p e r cent o r s t r i k e " and t h e y w i l l not r e p o r t b a c k u n t i l F r i d a y a f t e r n o o n . 3. T h i s i a a s e t b a c k to h o p e s of a g e n e r a l m o v e t o w a r d s a s e t t l e m e n t s i n c e the a t t i t u d e of the S h e l l d r i v e r s i s u n c e r t a i n and i n E s s o there is a M a n a g e m e n t i n t h e s e c o m p a n i e s do not c o n s i d e r a b l e d e g r e e of m i l i t a n c y . know what s o u n d i n g s the u n i o n has b e e n t a k i n g but they g u e s s that it i s m o r e p r o b a b l y on a c h o i c e b e t w e e n the 11 p e r cent c l a i m o r a s t r i k e , r a t h e r than on T h e r e i s c o n s i d e r a b l e p r e s s u r e f r o m the top union the 8.1 p e r c e n t o f f e r . o f f i c i a l s , l e d b y M r A l e x K i t s o n ( T G W U ) , f o r s t r i k e a c t i o n , even though m a n a g e m e n t b e l i e v e s that the m a j o r i t y of d r i v e r s a r e a g a i n s t t h i s . 4. B y the t i m e C a b i n e t m e e t s I w i l l h a v e a c l e a r e r p i c t u r e of the g e n e r a l p o s i t i o n i n the i n d u s t r y a n d i n p a r t i c u l a r i n S h e l l , whose shop s t e w a r d s me el on W e d n e s d a y . E s s o s h o p s t e w a r d s do not r e p o r t u n t i l T h u r s d a y . G i v e n the B P shop s t e w a r d s ' d e c i s i o n , we cannot be o p t i m i s t i c of a n e a r l y s e t t l e m e n t and we c a n n o t d i s m i s s the p o s s i b i l i t y of a s t r i k e next M o n d a y . T h e best hope i s that, w h e n B P s h o p s t e w a r d s r e t u r n on F r i d a y , they w i l l p r o d u c e a c l e a r 1 CONFIDENTIAL CONFIDENTIAL a c c e p t a n c e of the 8.1 p e r c e n t o f f e r . T h i s at l e a s t w o u l d b r e a k r a n k s i n the union position. In that event we m a y see a p a r t i a l s t r i k e o r a v a r i e t y of l e s s e r f o r m s of i n d u s t r i a l a c t i o n . T h e s e w o u l d p r o b a b l y not r e q u i r e an i m m e d i a t e r e s p o n s e f r o m the G o v e r n m e n t but w o u l d n e e d to be m o n i t o r e d by the C i v i l C o n t i n g e n c i e s U n i t ( C C U ) . 5. A t a m e e t i n g of C C U o n 4 N o v e m b e r , M i n i s t e r s d e c i d e d to take p r e l i m i n a r y steps to b r i n g f o r w a r d p l a n s to p r o t e c t e s s e n t i a l s e r v i c e s f r o m fuel shortages. If a n a l l - o u t s t r i k e o c c u r r e d , it w o u l d cut off t w o - t h i r d s of n o r m a l s u p p l i e s of o i l p r o d u c t s (the r e m a i n i n g o n e - t h i r d c o m p r i s i n g p i p e l i n e , s e a a n d r a i l d e l i v e r i e s ) a n d w o u l d b r i n g a l m o s t a l l r o a d d e l i v e r i e s to a h a l t . T h e S e r v i c e s ' p l a n , L E A D B U R N , w o u l d r e s t o r e about o n e - t h i r d of r o a d s u p p l i e s , thus p r o t e c t i n g e s s e n t i a l s e r v i c e s , with s o m e l i m i t e d c a p a c i t y to spare. B u t at b e s t , t h e r e w o u l d r e m a i n a s h o r t f a l l of about 40 p e r c e n t i n o v e r a l l s u p p l i e s a n d l a r g e p a r t s of i n d u s t r y a n d c o m m e r c e , a n d the g e n e r a l p u b l i c , w o u l d get no new s u p p l i e s at a l l . 6. S h o r t a g e s on this s c a l e w o u l d h a v e e a r l y a n d s e r i o u s c o n s e q u e n c e s f o r R o a d t r a n s p o r t f o r the g e n e r a l r u n of the c o m m u n i t y a n d the e c o n o m y . i n d u s t r y w o u l d b e c o m e l a r g e l y i m m o b i l i s e d w i t h i n about two w e e k s , p r e v e n t i n g the m o v e m e n t of r a w m a t e r i a l s a a d p r o d u c t s . P a r t s of i n d u s t r y w o u l d b e g i n to c o m e to a h a l t a f t e r two o r t h r e e w e e k s when r e s e r v e s t o c k s w e r e e x h a u s t e d . A l t h o u g h public t r a n s p o r t would be kept going by S e r v i c e s a c t i o n , there would be i n c r e a s i n g d i f f i c u l t i e s i n getting p e o p l e to w o r k as m o t o r i s t s r a n d r y . We h a v e no p r e v i o u s e x p e r i e n c e of t h i s k i n d of s i t u a t i o n a n d , a l t h o u g h p e o p l e g e n e r a l l y w o u l d no doubt do t h e i r b e s t to get r o u n d the d i f f i c u l t i e s , the p r e s s u r e s a r i s i n g f r o m f u e l d e p r i v a t i o n a r e bound to m a k e t h e m s e l v e s felt quite e a r l y on. 7. A g a i n s t t h i s b a c k g r o u n d 160 S e r v i c e i n s t r u c t o r s w e r e p l a c e d on n o t i c e on 5 N o v e m b e r to m o v e to t r a i n i n g l o c a t i o n s on 12 N o v e m b e r , a n d on 10 N o v e m b e r , the m a i n b o d y of 12, 500 m e n w e r e p l a c e d o n s i x d a y s ' n o t i c e to move. T h i s i s the l a t e s t t i m e t a b l e on w h i c h we c o u l d be r e a d y f o r the p o s s i b i l i t y o f a n a l l - o u t s t r i k e on 16 N o v e m b e r . 8. T h e C C U p l a n s to h o l d a f u r t h e r m e e t i n g t h i s F r i d a y . follows: T h e options a v a i l a b l e to it a r e as a. to s t a n d d o w n the S e r v i c e s (if the s i t u a t i o n has i m p r o v e d or significantly); b. to c o n f i r m the i m p l e m e n t a t i o n of L E A D B U R N on 16 N o v e m b e r a n d s e e k a P r i v y C o u n c i l to s e c u r e the P r o c l a m a t i o n of a State of E m e r g e n c y on that d a y (if the s i t u a t i o n has s h a r p l y d e t e r i o r a t e d ) ; o r c. to p l a c e the m a i n b o d y of S e r v i c e m e n on 24 h o u r s ' standby f r o m S u n d a y 15 N o v e m b e r (if a n a l l - o u t s t r i k e on 16 N o v e m b e r l o o k s uncertain). In t h i s c a s e it m a y be c o n v e n i e n t to a u t h o r i s e the H o m e 2 CONFIDENTIAL CONFIDENTIAL Secretary, may i n c o n s u l t a t i o n with the F r i m e M i n i s t e r a n d o t h e r M i n i s t e r s i m m e d i a t e l y i n v o l v e d , to t a k e any a p p r o p r i a t e d e c i s i o n that be n e e d e d o v e r the w e e k e n d o r i n the e a r l y p a r t of next week. 9. If, i n the l i g h t of d e v e l o p m e n t s b e t w e e n now a n d T h u r s d a y , we a r e u n a b l e to d e c i d e at C a b i n e t to r e l a x e x i s t i n g m e a s u r e s , I i n v i t e m y c o l l e a g u e s to a g r e e that C C U s h o u l d c h o o s e as a p p r o p r i a t e f r o m the o p t i o n s i n p a r a g r a p h 8 above. N L D e p a r t m e n t of E n e r g y 10 N o v e m b e r 1981 3 CONFIDENTIAL