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News / Union row could halt work on gas plant

One of the accommodation barges in Lerwick Harbour. Photo: Ian Leask

TRADE UNIONS have accused Petrofac chiefs of “burying their heads in the sand” after members voted overwhelmingly in favour of industrial action.

It is part of a long-running dispute which centres on unrest about accommodation and travel time for workers helping to build French oil giant Total’s new £800 million gas plant in the north of Shetland.

On Tuesday the GMB union, representing members employed by engineering firm Balfour Beatty, confirmed that a ballot had resulted in its workers joining their Unite counterparts in backing action. More than 90 per cent of ballots returned by members of both unions were in favour.

The unions want workers to be given an additional £50 a day to compensate for Petrofac’s failure to provide suitable accommodation for those working on the new gas plant.

They are also seeking payment for those staying on accommodation barges in Lerwick, who face lengthy journeys to and from the construction site near Sullom Voe.

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It is the latest escalation of a bitter row which most recently erupted in November as the GMB claimed 47 pipe fitters had been locked out because of the impending ballot. Petrofac insisted that the workers had simply been handed their notice as their services were no longer required.

Both unions are calling for more talks with Petrofac aimed at averting a strike, but are clear that the company must make concessions to prevent a walkout.

GMB said some workers employed by other contractors on the construction project were also involved in the dispute and would be balloted separately.

GMB Scotland’s secretary Harry Donaldson said the union was seeking “urgent” talks with Petrofac “to convey to them the ballot results and impress on management” the need to resolve the dispute.

Donaldson said: “The employers need to sit up and take notice of this overwhelming vote and put forward an offer to resolve this long-running dispute.

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“Petrofac have buried their heads in the sand for too long on important issues on this project. They have tried to bully and ride roughshod over standard industrial relations practices throughout.

“Even now, before this escalates further, TOTAL the client must stop Petrofac digging themselves into an even deeper hole than the intransigent one they are already in.”

Unite representative John Taylor said his members had voted overwhelmingly in favour of industrial action – though it is not, as yet, clear when any strike would take place.

He said part of the discontent was down to some workers having to share bedrooms with their colleagues. There is also unhappiness at facing bus journeys of around an hour each way.

Taylor told BBC Radio Shetland: “The accommodation issue is quite unique in the sense that most camps have single berth accommodation. This was built with two-man accommodation; it’s virtually impossible for some people to get sleep.

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“It’s a safety issue – the company has recognised that in the sense that they’ve brought barges in, but there’s still a large number of people that’s having to share accommodation.”

A Petrofac spokesman said it took the welfare of its workers “very seriously” and was “committed to working with all parties to reach a satisfactory outcome while delivering the project successfully”.

He said the company was “surprised” by the outcome and questioned how high turnout for the ballot had been.

“Everyone who is provided with free shared living accommodation was made aware during recruitment and when offered the role that the accommodation provided was on a ‘shared’ basis,” he said, “and they signed a waiver agreeing to this at the beginning of their employment.”

The spokesman said it formed part of a “very attractive package” offered to workers including higher salaries than they could expect for the same work on the mainland.

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He added: “However we have always aimed to maintain a constructive relationship with the unions – and we’ll be looking to meet quickly with them to see how we can move forward on this issue.” 

The project, designed to process reserves from the Laggan-Tormore gas pipeline, began in early 2010 and is due to be completed by the middle of 2014.

However various problems encountered during construction, unrelated to the industrial dispute, mean it is expected that some work will continue beyond the summer.

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