Another Baker Hughes (NASDAQ: BKR) base could be hit by strikes soon as employees prepare to vote on whether to down tools.
The GMB is balloting more than 200 workers at the energy services giant’s site in Newcastle after they twice turned down a “real terms pay cut”.
A Baker Hughes said the 4.56% offer is “competitive” for the industry, and the volatility of the oil and gas sector means costs have to be managed.
The dates of the vote will be announced in the coming days.
Union members at the company, which makes pipelines for the oil and gas industry, have “overwhelmingly” rejected pay increases of 4% and 4.56%.
With inflation at 12.3%, the GMB says both offers amount to “massive real terms pay cut”.
Michael Hunt, GMB organiser, said: “These workers are facing the worst cost of living pressures in a generation.
“Four and a half per cent is nowhere near enough.
“This is a multinational company making vital pipes for the energy sector – it’s order books are full for years to come.
“It can afford to do better by its workers.”
A Baker Hughes spokesperson said: “This is our final offer, which will also enhance employees’ total benefits package through measures such as higher employer pension contributions, enhanced life insurance and increased bonus payments based on basic salaries.
“We believe this offer is line with, if not above, competitive rates for our industry. The volatility of the global oil and gas industry over the last four years has meant we must manage our costs accordingly, and we continue to see high costs in our operations.
“Our Newcastle employees make a strong contribution to the Baker Hughes business, and we have no desire to see any form of industrial action. We will work closely with our employees to reach a conclusion that best meets the needs of all parties involved.”
The US-headquartered firm’s Montrose operations were recently impacted by strikes after around 110 workers knocked back a new deal.
Baker Hughes had made a proposal on shift patterns and pay, but Unite the Union said the new offer would see some workers lose “over £11,500 per year”.
It also claimed the firm would dismiss those who do not agree to the changes, something the company denied.
The changes followed a spate of lower contract orders, Baker Hughes said in July.
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