Around 150 Kaefer contractors have started a week of strikes at a pair of Scottish gas plants operated by Shell (LON: SHEL).
Unite the Union said it blamed Shell “who funds any deal” for the dispute at the St Fergus terminal in Aberdeenshire and the Mossmorran Natural Gas Liquids (NGL) 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.
Ending on December 4, the week-long strikes include 12 weeks of overtime ban after members returned a 75% “yes” vote to the action.
St Fergus lands around 20% of North Sea gas supply, while the Mossmorran facility processes natural gas liquids and exports products globally.
Unite claims that production at both facilities would be “severely impacted”, though operator Shell does not anticipate any impact.
The workers include inspectors and supervisors, riggers and rigging supervisors, forklift drivers, general assistants and mechanical supervisors.
Kaefer has been contacted for comment.
When workers voted last month, Kaefer said payment terms and conditions at both sites are above industry average and there are “no options available” to increase pay.
London-listed Shell said today it continues to encourage “constructive discussions” with Kaefer and the union to find a way forward.
Unite said Kaefer has failed to pay a supplementary cost of living payment of £1 per extra hour worked from between January and the end of June 2023, per the terms of the National Agreement for Engineering Construction Industry (NAECI).
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 £5.1bn and Kaefer’s 2022 profits of £1.86m, including £440,000 remuneration for its highest-paid director.
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