About 150 Kaefer contractors have started a week of strikes at a pair of Scottish gas plants operated by Shell.
Unite the Union said it blamed Shell “who funds any deal” for the dispute at St Fergus gas terminal, near Peterhead, and Mossmorran natural gas liquids facility in Fife, after Kaefer failed to make a cost-of-living payment.
The union said it had “no option” but to take action in response.
The strikes will end next Monday but there is also an overtime ban lasting 12 weeks after members returned a 75% “yes” vote to industrial action.
Aberdeenshire terminal handles one-fifth of all North Sea gas
St Fergus lands around 20% of the total North Sea gas supply, while the Mossmorran facility processes natural gas liquids and exports products globally.
Unite has claimed production at both facilities will be “severely impacted”.
But Shell does not anticipate any impact.
The striking workers include inspectors and supervisors, riggers and rigging supervisors, forklift drivers, general assistants and mechanical supervisors.
Kaefer has been contacted for comment.
Workers voted to strike earlier this month in a union ballot launched in October.
At the time, Kaefer said payment terms and conditions at both sites were above the industry average and there were “no options available” to increase pay.
Shell said today it continues to encourage “constructive discussions” with Kaefer and the union to find a way forward.
It’s a damning indictment on both Kaefer and Shell that our members have been forced into taking strike action.”
Bob MacGregor, Unite the Union
Unite said Kaefer had failed to pay a supplementary cost-of-living payment of £1 per extra hour worked from between January and the end of June 2023.
The union said this went against the National Agreement for the Engineering Construction Industry, which sets comprehensive terms and conditions of employment for hourly-paid engineering construction workers.
Unite industrial officer Bob MacGregor said: “The Kaefer contractors based at Mossmorran and St Fergus deserve a cost-of-living payment. It’s a damning indictment on both Kaefer and Shell that our members have been forced into taking strike action to get a payment.
“Shell, who own the plants, is amassing billions in the bank and Kaefer is also profitable. We will not rule out further action unless the company gets back round the negotiating table.”
Citing reasons for the strikes, Unite noted Shell’s Q3 2023 profits of £5.1 billion and Kaefer’s 2022 profits of £1.86 million, including £440,000 remuneration for its highest-paid director.
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