Several UK oil refineries owned by Ineos, along with power stations, chemical and sites, including for Esso, Essar and GSK PLC (LSE:GSK, NYSE:GSK) are facing disruption from potential strikes over a dispute with contractors over pay, which has not been increased since early 2022.
More than 3,000 engineering construction workers are being balloted over pay by trade union Unite under the National Agreement for Engineering Construction Industry (NAECI).
These workers, who carry out repair and maintenance at these sites or are involved in the construction of new build projects, are said to be angry that the value of their pay has been progressively falling since the pandemic.
Unite said that a Covid pay freeze was agreed even though they provided essential services throughout, followed by a 2.5% increase in January 2022 to cover pay into 2023.
The companies refused to reopen talks through 2022, Unite said, but following campaigning agreed to a non-consolidated pay supplement in February this year, which ends in December.
In real terms pay has fallen dramatically, the union said, since the pandemic with the two-year increase well below the rate of inflation, which at times topped 10%.
"This is in stark contrast to the financial situation of the companies they are working for and on behalf of - the majority of which have seen profits increase irrespective of inflation," Unite said.
A two-year NAECI pay deal was put forward for 2024 and 2025 averaging 6% per year, which was rejected by 92% of union membership, with Unite saying it "does not go far enough to restore wages" for the workers.
Unite general secretary Sharon Graham said: “This offer is completely unacceptable when the industries involved are awash with profits. It does nothing to reverse the shrinking value of these workers’ wages over successive years or that higher pay elsewhere is causing workforce shortages.
“It also ties these workers into gambling on the economy and inflation in 2024 and 2025 when their finances have already been battered by increasingly unpredictable market forces. Unite stands rock solid with our NAECI members – the employers’ must come back with an acceptable offer.”