LAGOS May 31, 2006 (Dow Jones Commodities News via Comtex)
Senior employees at Mobil Producing Nigeria Unlimited, a unit of ExxonMobil Corp. (XOM) have suspended their strike threat after management offered them a 30% pay increase, a source at the company told Dow Jones Newswires Tuesday.
Members of the Petroleum and Natural Gas Senior Staff Association of Nigeria, or Pengassan had demanded a minimum 32% salary hike.
The Mobil workers said their existing remuneration puts them in fifth place behind their peers in the local oil industry and the new agreement bumps them up to third.
The source, a member of Pengassan at Mobil, said the workers decided to accept the offer, "although it didn't take us far, compared to the competition."
Some of the members had demanded a 38% increase, needed to make them the best paid local workers in the hydrocarbon industry.
"They feel they should be number two or number one in the industry, because the company is making huge profit," Peter Esele, national president of Pengassan, told Dow Jones Newswires earlier in the week.
"Mobil workers feel they are the lowest-paid and that is a very big issue because the company has a very low operating expenditure," Esele added.
Mobil is the second-largest oil producing company in Nigeria, with a daily output of about 760,000 barrels of crude oil.
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