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St Fergus gas plant workers vote to strike

An overtime ban will also be introduced for Kaefer contractors working at the terminal near Peterhead.

Shell's St Fergus gas terminal, near Peterhead.
Shell's St Fergus gas terminal, near Peterhead.

Around 150 Kaefer contractors based at Shell-operated gas plants in Aberdeenshire and Fife have voted for a week of strike action in a dispute over a cost-of-living payment.

Following a ballot, union bosses at Unite Scotland said 75% of maintenance and repair contractors based at the St Fergus gas terminal, near Peterhead, and Mossmorran natural gas liquids facility supported striking between November 27 and December 4.

In addition, the union said a continuous overtime ban will be in effect for 12 weeks, commencing with the start of the strike.

What’s the dispute about?

Unite said the dispute centred on Kaefer not providing a cost-of-living payment for 2023.

The union added the Kaefer workers were covered by the National Agreement for Engineering Construction Industry (NAECI) and received a pay increase of 2.5% for the year.

But, while other workers covered by the NAECI secured a supplementary cost-of-living payment of an extra £1 for every hour worked between January and June, plus 75p for each hour worked from July, Kaefer’s employees at St Fergus and Mossmorran did not.

Union highlights Shell’s bumper profits

Unite included operator Shell in its blame for the stand-off, highlighting the energy giant’s billions in profits this year.

Sharon Graham, general-secretary for the union, said Kaefer had left union members with “no option but to take strike action”.

She added: “The company, along with the operator, Shell, who ultimately funds any deal, have refused to make our members any offer, never mind a fair one.

Shell's Mossmoran NGL facility in Fife.
Shell’s Mossmoran NGL facility in Fife. Image: Ed Robinson/Shell

“Shell is awash with money and experiencing a multi-billion-pound profit bonanza.

“Funding a cost-of-living increase for our members would not even scratch the surface of its profits.”

Unite industrial officer Bob MacGregor said the Kaefer contractors “deserve a fair pay rise” as Shell are “amassing billions in profit”.

Further action not ruled out

Mr MacGregor added the union would not rule out taking further action unless “Kaefer get back round the negotiating table to make our members a cost-of-living payment”.

Unite said the Kaefer contractors included scaffold inspectors and supervisors, riggers and rigging supervisors, forklift drivers, general assistants and mechanical supervisors.

A statement from the union added: “Without these essential workers, production at the Mossmorran plant and St Fergus gas plant would be severely impacted, and could not be operated safely.”

What are Kaefer and Shell saying?

A spokesperson for Kaefer said: “We confirm that Kaefer employees currently contracted to work at industrial sites in St Fergus and Mossmorran, and who are members of the union Unite, have advised us they intend to take industrial action following a ballot over further requests for ‘cost-of-living’ pay increases.

“Kaefer is satisfied the current payment terms and conditions at both sites are above industry average, and it has been communicated to employees there are no options available to increase pay further.

“All site-based Kaefer personnel have received paid performance incentives this year.

“Kaefer remains open to ongoing discussions with our employees and Unite union representatives to resolve this situation.”

A spokesperson for Shell said: “We continue to encourage constructive discussions between Kaefer and the union to understand their members’ concerns and to explore potential ways forward.”

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