(Bloomberg) — More than two dozen of Exxon Mobil Corp.’s trading staff declined the oil giant’s offer to transfer to London from Belgium, putting their jobs at risk, according to a union official.
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A majority of the traders — 25 out of 36 — declined to relocate, according to Fransy Van de Gucht of the ACLVB union. “Those 25 will be gradually dismissed once they have handed over their job to — mostly newly hired — counterparts in London,” he said.
Earlier this year, Exxon asked traders in Belgium to relocate to the UK after it created a new global trading division. The move is part of a major expansion in trading for the oil company, which historically hasn’t taken on as much risk as European rivals Shell Plc and BP Plc.
Europe is a “challenging business environment” and the UK move will help the company “remain competitive for the long term,” Exxon said in a statement. “London provides better proximity to trading activities, trading talent pool, and will support our evolution as a trading organization.”
A majority of Exxon’s Brussels-based trading staff previously said they wouldn’t move to London because of “uncompetitive” pay and a “lack of flexibility.” Trading staff had protested about the move outside the oil giant’s Brussels office in April.
The company previously introduced a new compensation policy that would pay some traders cash bonuses.
(Updates with Exxon comment in fourth paragraph.)
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