BP has unveiled a complex new pay deal for its retail staff, offering a higher hourly wage in exchange for a reduction in total benefits. The energy titan will raise the minimum pay for its forecourt workers to £13.45 per hour, a 6.7% increase. However, to fund this rise, the company is scrapping paid rest breaks and reducing the number of bank holidays that attract premium pay rates.
This “restructuring” affects roughly 5,400 people. The company argues that the new rate is a positive step, ensuring compliance with the Living Wage Foundation’s standards. Yet, the removal of paid breaks—a benefit that effectively paid staff to recharge during their shifts—drastically alters the value proposition. Previously, a worker might get paid for 8 hours while working 7.5; now, they will only be paid for the 7.5 hours they are physically working.
The reduction in bank holiday bonuses is another blow. Historically, retail staff rely on time-and-a-half or double-time payments on public holidays to boost their annual earnings. BP’s decision to pay premium rates on “fewer” national bank holidays effectively removes this incentive and financial bonus for working during times when most of the country is off.
Calculations by industry observers suggest that the new deal is a wash for many employees. A typical shift might yield less than 10 pence in extra profit for the worker once the lost benefits are factored in. This has led to criticism that the company is engaging in a cosmetic exercise—boosting the headline wage figure for PR purposes while cutting costs in the fine print.
As the implementation date in February approaches, the mood among staff is reported to be tense. While BP asserts that they are supporting colleagues by bringing the pay rise forward, the loss of established perks is a difficult trade-off. The move underscores the fragility of employee benefits in the modern retail environment, where higher base wages often come at the cost of other longstanding conditions.