Total, unions in talks to resolve refinery walkout

Feb. 4, 2009
Unofficial strikes by energy workers at refineries and power stations in the UK have continued for a fifth day as unions and management attempted to reach a solution.

Uchenna Izundu
OGJ International Editor

LONDON, Feb. 4 -- Unofficial strikes by energy workers at refineries and electric power stations in the UK about the contracting of foreign workers have continued for a fifth day as unions and management attempted to reach a solution.

The action, engaging more than 1,000 workers, is supporting refinery employees at Total UK Ltd.'s 200,000 b/d Lindsey refinery in Lincolnshire. Their protest results from the company's award of a multimillion contract to Italian firm Irem SPA to build a diesel hydrodesulfurization unit (OGJ Online, Jan. 30, 2009). Total said the strikes had not affected Lindsey operations.

As the recession bites and unemployment rises, the strikers claim that skilled local men are losing jobs so Total can use cheap labor from abroad, which Total vehemently denies.

"We recognize the concerns of people, but we must stress that it has never been, and never will be, the policy of Total to discriminate against British companies or British workers. We have been a major local employer for 40 years and the majority of our 500 permanent staff are local. Our investment in the new HDS-3 unit will help to secure the long-term future of the refinery and local employment opportunities," Total said.

The wildcat strikes, which have been criticized by British Prime Minister Gordon Brown, were discussed by the Home Affairs Select Committee during a parliamentary session on Feb. 3.

The Confederation of British Industry, a lobbying group, told the committee that it had not seen any evidence of discrimination against British workers. It added that although it fully understood their feelings, Total had been operating lawfully.

With the recession tightening its grip, the row over foreign workers throws into doubt the aspiration of the European Union to have free movement of workers. Politicians will face increasing pressure as voters demand "British jobs for British workers," a phrase Brown used in 2007 that is now haunting him. Politicians will also have to explain why migrants should be welcomed. They also could insist that companies pay punitive tariffs on imports, which would undermine the antiprotectionism movement.

Derek Simpson, joint leader of Unite union called on the UK government to "ensure that employers do no not raise barriers to UK-based labor applying for work. There should be a level playing field for workers who wish to apply for work on Britain's engineering and construction projects."

The government has asked Acas, the employment dispute resolution organization, to investigate the wildcat strikes. It is facilitating talks between Total and the unions on how the parties can return to normal working arrangements.

Acas will publish a report on Feb. 13 that will look at Total's contract award to IREM and will focus on the contractual arrangements, tendering processes, minutes of meetings, and the operation of national and local agreements.

Contact Uchenna Izundu at [email protected].