Statement on industrial
action at Lindsey Refinery Business Secretary Lord Mandelson
DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2009/18)
issued by COI News Distribution Service. 2 February 2009
Your Lordships,
with permission I would like to make a statement about the current
industrial action at the Lindsey refinery and elsewhere in the country.
On Thursday and Friday last week, contract workers at the Lindsey
refinery in North Lincolnshire and elsewhere took part in
unofficial industrial action. This has been followed today with
further such action at Sellafield power station and other sites
around the UK.
The stated reason for such action is said to be because a
contract awarded at the Lindsey site to an Italian contractor,
IREM, has resulted in discrimination against British workers
through the exclusive employment of Italian and Portuguese workers.
On the Lindsey site, the great majority of the workers are British.
All the striking workers, I understand, are from maintenance or
enhancement projects on the sites; and as of this afternoon there
is no disruption of production at any of the sites where this
unofficial industrial action is taking place.
On Friday my Department asked ACAS, the independent arbitration
service, to meet the employers and the unions to examine the
various accusations being aired and to establish the facts. We
expect their report very quickly.
ACAS were in touch with the parties over the weekend and I
understand the first meeting is taking place today. ACAS's
first responsibility is to report to us on whether laws have been
broken. If they have we will take action.
We are determined to see robust enforcement of the employment
rights legislated for by this Parliament, and fair and proper
application of the European rules which govern the operation of
companies throughout the EU and the mobility of labour which has
always been an intrinsic part of membership of the EU and
supported by successive British Governments.
In a statement issued yesterday, the energy company Total which
runs the Lindsey site said that, "It has never been, and
never will be, the policy of Total to discriminate against British
companies or British workers." It went on to say that it
sub-contracts on a fair and non-discriminatory basis and that the
wage rates are the same as for equivalent jobs on the site.
Two key accusations have been made in recent days. The first is
that the use of labour from overseas leads to an erosion of wages
and conditions for all concerned because these workers are paid
less than UK workers.
The second is that there is
discrimination in recruitment practice against British workers.
The statement issued by Total last night confirmed that workers
from overseas are paid at the same rate as other workers on site.
And it further confirmed that they do not operate any policy of
discrimination with regard to tendering or recruitment. The same
rules apply here as they do with UK companies bidding for work
overseas - and I would remind the House that there are 300,000 UK
companies operating elsewhere in Europe.
Sub-contracts can be bid for by UK or overseas based companies.
Of course, if an overseas company wins a contract they can use
their permanent employees to carry out the work, but Total has
confirmed that where new vacancies are advertised, they will work
with sub-contractors to ensure that UK workers are considered in
the same way as anyone else.
The workers coming here from
Italy and Portugal are protected by the EU Posting of Workers
Directive, which the UK has implemented fully. This guarantees
these workers minimum standards, for example, on pay and health
and safety. The Directive facilitates the free movement of
services within the European Union, a vital market for British companies.
In the case of the Lindsey refinery, we have been informed that
all sub-contractors adhere to the National Agreement for the
Engineering Construction Industry which governs terms and
conditions, working hours and pay.
Membership of the European Union, and taking advantage of the
opportunities for trade presented by the EU, are firmly in the
UK's national interest. Free movement of labour and the
ability to work across the EU has been a condition of membership
for decades.
It is important that we respect and guarantee that principle; not
least because it guarantees the right of hundreds of thousands of
British workers and companies to operate elsewhere in Europe. To
illustrate the importance of Europe to the UK:
- half of our 370 billion pounds of exports per year go to the
EU
- half of our 315 billion pounds inward investment comes
from the EU
- and between 3 and 3.5 million UK jobs are linked
both directly and indirectly with our trade with the EU
At a difficult economic time, we fully understand the anxieties
people have about their jobs. That is why we have been taking the
measures we have been to support people through these difficult times.
We strongly believe in fair opportunities for everyone in this
country and in ensuring that British people have access to
advertised job vacancies.
It would be quite wrong and indeed against the law for companies
to advertise vacancies and exclude British people from them.
Equally, it would run contrary to the principles of the single
market and indeed harm British people working abroad for us to
exclude foreign workers from employment in the UK.
Of course, we understand the concerns of workers at a time of
economic difficulty, and we have now established a mechanism
through the ACAS process to examine those concerns. It is through
this strong and independent process that we should proceed, not
through the continuation of the unofficial industrial action which
has been taking place.
Our aim is to get through the economic difficulties we face with
Britain continuing as a great trading nation, with our companies
able to operate worldwide, and our workers equipped for the jobs
and industries of the future.
I commend this Statement to the House.