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Further Teesside Protests expected in 'pay the rate' dispute

Thursday, August 3, 2017

Construction unions (GMB and Unite) have warned that further protests are likely in a dispute over companies failing to pay industry rates and employ local workers on the £175 million energy from waste project in Port Clarence, Teesside.

Disgruntled, skilled local workers held a protest outside the site on Monday (31 July).

All the companies on the site have failed to adhere to the National Agreement for the Engineering Construction Industry (the NAECI agreement) and some of the sub-contractors have explicitly failed to recruit local labour.

The project is being financed by Copenhagen Infrastructure Partners, the investment arm of Pension Danmark.

The work is being undertaken by Babcock & Wilcox Volund, also a Danish based company.

The work has been sub-contracted to several companies, Duro Dakovic undertaking the boiler work, ZRE undertaking the pipe work, FJ Booth the steel work and Palmer Scaffolding.

None of the companies are fully following the NAECI agreement and some of the companies have been known to only pay the national minimum wage (currently £7.50 an hour) on previous UK projects.

FJ Booth and Palmer Scaffolding are mirroring the minimum rates of the NAECI agreement of £15.12 an hour, without paying a bonus.

The standard rate payable under the NAECI agreement is £16.97 an hour with an hourly bonus of £2.37 an hour.

The undercutting which is occurring on the site would be illegal in Demark, as the country has introduced the European Union Posted Workers’ Directive in such a way that all companies bringing in overseas workers have to abide by the relevant industrial agreement.

There have been a series of energy from waste projects funded by Copenhagen Infrastructure Partners, all of which have resulted in the undercutting of wage rates or the contractor failing to comply with the relevant industrial agreement.

Representatives from GMB and Unite are due to meet senior members of Pension Danmark on Monday 7 August in an attempt to resolve the dispute.

The unions have already secured the support of Danish trade unionists who sit on the board of Pension Danmark.

Phil Whitehurst, GMB National Officer for Construction, said:

“The companies involved at Port Clarence are ignoring the large, highly skilled local workforce and instead bussing in labour from outside – and not paying them proper wages.

“How do they think people on Teesside are going to react?

“This protest is just the tip of the iceberg – we will be back again and again until these companies get the message that what they are doing is not right.” 

Unite regional official Steve Cason, said:

“Workers on Teesside are angry and frustrated that the companies involved in the Port Clarence project are frequently ignoring skilled local workers in recruiting for this project and all the companies are failing to adhere to the NAECI agreement.

“Babcock and Wilcox Volund has consistently failed to address our concerns and is deliberately dragging its feet in reaching an agreement to resolve the inherent exploitation occurring on its sites. If there is no agreement then further protests are inevitable.

“If there is no resolution to the dispute, Unite will consider balloting its members over the failure of contractors to enforce the correct pay rates.”


Contact: GMB Press Office on 07958 156846 or at

Previous Press Releases:

GMB Asks Danish Govt To Investigate Undercutting

Thursday, April 13, 2017

More than 5,000 back petition handed into Danish Embassy by unions.

Read more:

Unions Demonstrate Over Undercutting

Tuesday, April 11, 2017

Construction unions GMB and Unite are to hold a series of demonstrations tomorrow (Wednesday 12 April) [1] over the undercutting and exploitation of construction workers.

Read more:

Construction Unions Take Undercutting Campaign To Denmark

Friday, April 7, 2017

Read more:

Danish Protest After Bosses 'Wash Hands' Of Undercutting

Monday, June 12, 2017

Members of GMB and Unite are again protesting in Copenhagen, Denmark tomorrow (Tuesday 13 June) after the financier of major energy from waste plants in the UK, tried to ‘wash its hands’ of the undercutting of pay and conditions on a number of projects.

Read more:

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