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Operations at the Stanlow oil refinery, owned by Essar Oil UK, are experiencing significant disruption as a major strike over pay grievances commences this week.
At the heart of this industrial action, approximately 450 employees, including a vital force of scaffolders, have begun a walkout backed by the UK’s largest union, Unite.
The workers involved span a variety of professions, with scaffolders playing a crucial role in the ongoing operations of the refinery. Over the years, these workers, along with electricians, crane drivers, welders, pipe fitters, riggers, and steel erectors, have seen a steady decrease in their real-term hourly wages, set by the National Agreement for the Engineering Construction Industry (NAECI).
The crux of the discontent lies in the employers’ refusal to increase bonus payments. This comes amidst Essar Oil UK recording robust operating profits of £253 million during the first half of the 2023 financial year.
Despite these gains, the bonus rate for workers, including scaffolders, remains a mere 80p per hour.
Unite general secretary Sharon Graham expressed solidarity with the workers, stating, “Essar is absolutely awash with cash, and its contractors at the refinery are on extremely lucrative contracts. It is completely unacceptable that these workers, who play such a crucial role, are being refused a reasonable bonus rate. Unite defends our members’ jobs, pay and conditions to the hilt and Stanlow’s workers have their union’s total backing in taking strike action.”
To combat the pay disparity, a continuous overtime ban that includes call-outs and standbys began today (17 July). The first two-day strike action starts on 18 July, with more strikes scheduled for 25, 26 July, and 1, 2, 8, and 9 August. The industrial action will intensify if the dispute remains unresolved, Unite said.
The strike is anticipated to severely impact the Stanlow refinery, the UK’s second-largest, which supplies 16% of the nation’s road fuels and is a significant producer of aviation fuel.
Unite regional officer Lee Brennan emphasised the urgency of the matter, saying, “Over the last five years, our members’ wages, have not kept pace with the cost of living. The NAECI pay award for this year has resulted in a substantial real terms pay cut for the highly skilled and essential workforce. The employers and Essar can absolutely afford to pay a fair bonus rate, and that is what needs to happen.”
Scaffolders and other employees are represented by contractors, including Altrad, Babcock, Bilfinger, Hutchinson Engineering, Pump Supply & Repair Group, Sarens, and Wood Group.
