More than 100 contractors at two Scottish gas plants are being balloted for strike action in a dispute over pay and conditions.
Unite the Union warned safety may be compromised if strikes do go ahead at St Fergus, near Peterhead, and Mossmorran, in Fife.
A deal proposed by energy services group Kaefer amounts to a “real terms pay cut” for workers at both sites, leaving them “no choice” but to prepare for industrial action, the union added.
Kaefer said safety was “paramount” and insisted this would not be affected.
Workers have rejected a pay offer of between 5-7%, depending on job grade, with the union claiming there have been “repeated breaches” by Kaefer of a collective agreement covering arrangements for consultation and dispute resolution.
Alleged breaches
These alleged breaches include the introduction of fixed-term contracts without consultation at the plants, and a failure by company management to attend scheduled consultation meetings, the union said.
Energy giant Shell operates both the St Fergus plant – which treats gas brought ashore from the North Sea – and the facility at Mossmorran, which separates natural gas liquids into other usable commodities such as propane, butane and ethane.
Kaefer, headquartered in Bremen, Germany, provides a range of asset integrity services around the world.
It today employs about 3,000 people across its operations in the UK and Ireland following its takeover of Wood Group’s industrial services business in early 2020.
Contractors at St Fergus and Mossmorran include scaffold inspectors and supervisors, riggers and rigging supervisors, forklift drivers, general assistants and mechanical supervisors.
Unite warned the absence of these workers will mean production at the plants being “severely impacted” and unable to operate safely.
A Shell spokesman said: “We are aware of Unite the Union’s intention to ballot its members employed by Kaefer at two of our onshore gas plants.
“We are disappointed by this course of action, and continue to support constructive dialogue between Unite and Kaefer to reach a mutually agreed outcome.”
A Kaefer spokeswoman said: “We have made an offer to Unite which was recommended for acceptance by the union.
“This has… been rejected by their members, however, we continue to support constructive dialogue between Unite and Kaefer to reach a mutually acceptable resolution.
“The safety of our teams remains paramount and will not be affected by any potential industrial action.”
These workers help make Shell’s vast profits – they deserve their fair slice of the pie.”
Sharon Graham, general-secretary, Unite the Union.
Unite industrial officer Bob MacGregor said: “Unite’s members are essential to the condition, safety and maintenance of the Mossmorran and St Fergus plants.
“Without these workers, the plants just couldn’t operate safely.
“We call on Kaefer and Shell to re-engage with Unite before this dispute dramatically escalates.”
The ballot will open tomorrow and close on October 25.
‘Unfettered profiteering’
Unite officials also took aim at the record takings posted by Shell and other energy companies, which it described as “unfettered profiteering”.
The first half of the year saw Shell post record pre-tax profits of $36.9 billion (£33.4 billion), though the group expects to report a dip in performance in its third-quarter results on October 27.
Unite general secretary Sharon Graham said: “Kaefer is leaving Unite’s members working at the Mossmorran and St Fergus plants with no choice but to ballot for a strike.
“They are asking workers to take a significant real-terms pay cut, while the operator, Shell, who will ultimately fund any deal, is swimming in record, multi-billion profits.
“These workers help make Shell’s vast profits – they deserve their fair slice of the pie.”
They also have their union’s “full support in this fight to improve their jobs, pay and conditions”, Ms Graham said.
Conversation