BP cuts cost of living allowance

Steve Sutherlin

BP Exploration (Alaska) Inc. will reduce its cost-of-living allowance and travel money for exempt salaried employees — half of its 1,200 Alaska workers. The cut won’t affect hourly employees.

BP’s salaried workers get an allowance of 20 percent of their base pay or $20,000, whichever is less. Next year the allowance will drop to 15 percent, maximum $15,000, Ronnie Chappell of BP said. A program giving employees and family members in Alaska $800 each for personal travel will end.

A BP survey of living costs in other North American cities where it operates placed Anchorage between the most expensive and least expensive, Chappell said.

“We acted to contain our costs and keep our business competitive, while continuing to provide our employees with compensation that recognizes the remoteness of an assignment in Alaska,” Chappell told PNA.

Phillips Alaska Inc. offers a 20 percent cost-of-living allowance with a maximum of $20,000, and an $800-per-family-member travel allowance. Phillips hasn’t announced a change. Phillips is committed to paying compensation and benefits that are competitive with the market place, Dawn Patience of Phillips told PNA.