World loss log: 1 - 14 September 2009

Property and business interruption

4.9, industrial action

UK: some of the country’s largest oil refineries and power stations faced being shut down after workers voted to stage official action over the hiring of cheaper foreign labour. The result of the ballot followed months of “wildcat” action sparked by the use of foreign contractors at Lindsey oil refinery in Lincolnshire. The vast majority of 7,000 GMB union members at seven sites, which include the nuclear complex at Sellafield and BP’s North Sea gas pipeline, voted in favour of industrial action. They wanted employers to allow unions to carry out full audits of the contracts of all 30,000 workers. Unions accuse companies of reneging on national collective pay deals by hiring workers, often from overseas, on lower wages. Fellow union Unite, which represents the remainder of the workforce, was also in the process of balloting its members. It is expected to announce the result next week, but members were also understood to have balloted overwhelmingly in favour of action. GMB will wait for the result of Unite’s ballot before taking action. Union officials will meet employer representatives for talks, but workers’ leaders are determined to take action to prevent the further erosion of the principle of collective pay bargaining. Employers counter that being prevented from hiring foreign staff for lower wages than agreed under collective pay deals obstructs the movement of labour in the European Union. Employment lawyers said that companies could attempt to overturn the ballot in the high court, which would make the planned industrial action illegal.