Stanlow oil refinery facing strike action over pay dispute

Around 350 engineering construction workers at the Stanlow Essar oil refinery are being balloted for strike action over pay.

Unite the Union is balloting more than 3,000 workers at oil refineries, power stations, chemical and pharmaceutical plants around the UK, including the Stanlow site.

The workers are employed by contractors under the National Agreement for the Engineering Construction Industry (NAECI) and carry out essential repair and maintenance at the oil refinery. Unite says strike action would cause significant disruption at the site.

Unite members are angry that the value of their pay has been progressively falling since the pandemic. During COVID they agreed to a pay freeze, even though they provided essential services throughout. In January 2022, they received a two-year pay deal of 2.5% for 2022 and again for 2023.

Despite rocketing inflation and huge increases to the cost of living, the Engineering Construction Industry Association (ECIA), which negotiates NAECI with the trade unions, refused to reopen talks through 2022. After campaigning by Unite, the ECIA eventually agreed a non-consolidated supplement in February 2023, which ends in December.

As a result of the COVID pay freeze and two-year below-inflation deal, the spending power of the workers’ pay has fallen dramatically, said the union. This is in stark contrast to the financial situation of the oil industry where profits have increased, irrespective of inflation, it added.

Unite began preparing for formal industrial action proceedings when it became clear the two-year deal put forward for 2024 and 2025 averaging six per cent per year was rejected by the workers. The offer does not go far enough to restore wages for NAECI workers, it said.

Unite general secretary, Sharon Graham, said: “This offer is completely unacceptable when the oil industry is awash with profits. It does nothing to reverse the shrinking value of these workers’ wages over successive years.

“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 ECIA must come back with an acceptable offer.”

The ballot for strike action will close in mid-October, with strike action scheduled to start later that month.

Unite national officer, Jason Poulter, said: “The anger amongst our membership is such that we are balloting for strike action. The ECIA must acknowledge that without a better offer, falling recruitment and retention for NAECI roles will only get worse.

“Any disruption caused by potential strikes lies squarely at their door – a much improved offer needs to be put forward if this dispute is not to escalate into industrial action.”

An Essar spokesperson said: “We are aware of the ongoing dispute between the ECIA and Unite regarding the NAECI.

“Essar is not party to these negotiations and Essar employees will not be taking part in this industrial action ballot.”

The ECIA has been contacted for comment.