UPDATE: UK Strikers Get More Jobs For Local Workers On LNG Site
May 20 2009 - 5:10PM
Dow Jones News
Industrial services company Hertel will withdraw 40 non-U.K.
workers from a project at the South Hook liquefied natural gas
terminal after U.K. workers demanded it offer the jobs to local
workers, it said Wednesday.
"Following discussions today we have agreed to withdraw
immediately all 40 non-U.K. workers and will be looking to directly
employ suitably skilled U.K. workers," Hertel U.K.'s managing
director David Fitzsimons said in an e-mailed statement.
The dispute at the South Hook LNG terminal at Milford Haven,
Wales, triggered walkouts by hundreds of contract workers across
U.K. energy facilities Tuesday and Wednesday.
"We trust this will bring the unofficial strike action to an end
and hope staff will agree to return to work today," Fitzsimons
said.
The U.K. contractors, who mainly worked in construction and
maintenance, objected to Netherlands-based Hertel's use of foreign
labor over local labor, the U.K.'s GMB Union said Tuesday. Hertel
was contracted by the South Hook LNG Terminal Company Ltd. to carry
out a three-week insulation project at the terminal.
The wave of walkouts echoed similar industrial action in January
and February over French oil major Total SA's (TOT) awarding of a
construction subcontract at its 200,000 barrel-a-day Lindsey oil
refinery in northern England to Italy-based company Irem SpA. Total
also struck a deal earmarking more jobs for U.K. workers.
Workers at ConocoPhillips' (COP) 221,000 barrel-a-day Humber
refinery in northern England walked out for a second day in
sympathy with the South Hook workers Wednesday. They were joined by
contractors from the nearby Lindsey refinery.
Around 800 protestors participated in a peaceful protest near
the refineries, local police said.
Meanwhile, 300 contract workers at RWE AG's (RWE.XE) Aberthaw
Power Station in Wales downed tools for a second day and 100
contractors at U.K. power company Scottish and Southern Energy's
(SSE.LN) Fiddlers Ferry power station walked out. Fifty contractors
employed by Hertel at Chevron Corp.'s (CVX) 220,000 barrel-a-day
Pembroke refinery also left their posts.
Operations weren't affected at the six sites where unofficial
strikes were reported.
Hertel said it hoped to have the replacement workers employed on
the South Hook site this week.
"Though we were unable to find qualified, local employees to
fill the roles when first recruiting for the project, we have now
been told that a number of applicants are available," Fitzsimons
said. "Our policy is always to recruit local and U.K. people where
they are available and have the right skills and qualifications,
although using the original, non-U.K. workforce employed by our
sub-contractor did not contravene national agreements negotiated
with the relevant trade bodies," the company added.
-By Lananh Nguyen, Dow Jones Newswires; +44 (0)20-7842-9479;
lananh.nguyen@dowjones.com
(Angela Henshall, Nick Heath, Sherry Su and Selina Williams
in London contributed to this report.)