News: Strike action at KP Nuts in Rotherham

The production of the famous salted and dry roasted peanuts in Rotherham could grind to a halt for a week in September as Unite union members prepare to strike at KP Nuts.

The workers at KP Snacks have voted overwhelmingly by 83% to take strike action for a week beginning on September 5. The union is warning that unless the company ups its pay offer strike action will escalate. The Hellaby factory is the sole producer of KP Nuts so the walk-out will stop the production of one of Britain’s favourite snacks.

The workers have rejected a below inflation 8% pay offer. The company has increased its profits by 275% since 2018. In stark contrast, average pay at KP Snacks has fallen in real terms by 14% since 2018.

Advertisement
Unite general secretary Sharon Graham said: “Unite’s message to KP Snacks is if you pay your workers peanuts, expect strike action.

“The company has increased its profits by an astonishing 275 per cent since 2018. But the workers’ pay has fallen 14 per cent in real terms over the same period. That’s why workers are refusing to accept anything less than a pay deal which keeps up with the cost of living.

“The workers have Unite’s total support in their drive for a fairer share of the company’s huge profits.”

The snacks brand has made matters worse by refusing to offer the lowest paid workers a consolidated pay rise. Instead, management is offering the workers a one-off payment. The hygiene team earns just £10.66 an hour, “the KP living wage”.

Unite regional officer Chris Rawlinson said: “If bosses want to avoid a nut shortage across pubs and supermarkets they need to put a fairer pay offer on the table.

“KP Snacks made £54 million in profit last year, the company can easily afford to pay workers more. Management should be focused on negotiating an end to the dispute or strike action will escalate.”

KP Snacks website
Unite website

Images: Google Maps

Read more...

News: Workers at KP Snacks in Rotherham won’t accept “peanuts”

Workers at KP Snacks in Rotherham are voting for strike action.

135 workers at KP Snacks at Hellaby, including low-paid cleaners, will begin voting on strike action today. Strike action would shut down the factory and disrupt supplies of KP Nuts to pubs and supermarkets.

Unite the union said that the company made £54m in profit and has increased its profits by 275% since 2018. In contrast, average pay at KP Snacks has fallen in real terms by 14% since 2018.

The famous snacks brand has excluded the lowest paid cleaners from its pay offer. The hygiene team earn just £10.66 an hour, which is called by the firm, “the KP living wage”.

Advertisement
Unite general secretary, Sharon Graham said: “KP Snacks has increased its profits by 275 per cent since 2018. This year workers won’t accept being paid peanuts.

“To exclude the lowest paid workers from the pay negotiations all together is corporate greed in action. Especially when KP Snacks made £54 million in profit. The workers have Unite’s steadfast support.”

The current company offer is a below inflation 6% increase plus a £1,000 one-off payment. Taking on the 141,000 sq ft Hellaby 140 building for its new £16m state of the art nut processing and packing facility, the factory is the sole producer of KP Nuts.

Unite regional officer, Chris Rawlinson said: “KP Snacks in Rotherham is the sole producer of KP Nuts. So if the strikes go ahead pubs and supermarkets will be hit hard. Unite members are determined to get a fairer portion of the company’s huge profits. It’s time for management to put a serious pay offer to the workforce.”

Previously based at Eastwood, in 1968 it became part of United Biscuits before it was sold to German-headquarted multinational group, Intersnack, in 2012.

At the end of 2022, 700 workers employed by Greencore at its Waleswood site in Rotherham secured pay increases following a pay deal negotiated by Unite.

KP Snacks website

Images: Google Maps

Read more...

News: Rotherham jobs at risk as DWP announce office closures

The Department for Work and Pensions (DWP) has announced large-scale office closures, which unions say will almost certainly mean job losses.

At least 1,000 jobs are at risk over the closure of 13 processing sites, with more job losses feared over the closure and relocation of a further 29 offices. Closures are scheduled to happen by June 2023.

Included in the list of locations is the DWP office in the Dearne Valley in Rotherham.

Discovery House on the Callflex Business Park has been placed in the "Sites closing, alternative offered" category by the government department.

The DWP is responsible for welfare, pensions and child maintenance policy. As the UK’s biggest public service department it administers the State Pension and a range of working age, disability and ill health benefits to around 20 million claimants and customers.

Advertisement
In Rotherham, the 30,000 sq ft office is home to DWP's debt management operations such as the Counter Fraud and Compliance Directorate (CFCD) team.

A statement from the PCS union said: "The government was quick to praise civil servants at the start of the pandemic, but ministers are even quicker to fire them now they have declared the pandemic over.

"Our members have worked tirelessly behind the scenes, keeping the country running, paying out benefits to almost two-and-a-half million families, helping them to put food on their table and keep a roof over their head.

"These are the workers rightly praised in 2020 by secretary of state for work and pensions Theresa Coffey as ‘exceptional’. In November 2021, prime minister Boris Johnson called DWP staff “miracle workers”.

"Now, as food and fuel prices rise faster than ever, they are being abandoned by Coffey and Johnson’s cronies and left to fend for themselves."

Images: Google Maps

Read more...

News: Reaction to restart of Rotherham steelworks

The news that Liberty is to invest £50m into restarting steel production at its Aldwarke site in Rotherham has been welcomed and described as a "step in the right direction."

The company, part of Sanjeev Gupta's GFG Alliance, employs hundreds of staff in South Yorkshire and has struggled following the collapse of its principal lender, Greensill Capital.

In an update on restructuring and refinancing progress, GFG said that it will inject £50m of shareholder funds into Liberty Steel UK to allow time to prove the operations can run efficiently which will enable them to finalise longer term debt restructuring.

Wentworth & Dearne MP John Healey said: “This is a breakthrough after months while Liberty workers have been left in limbo. Liberty is at the heart of steelmaking in Rotherham, and we’ve been holding our breath for the working capital to restart production. But £50 million won’t be enough for long, so full long-term refinancing for Liberty UK now needs to follow rapidly from the deal for Liberty Australia. Only then, will Rotherham breathe more easily.

“It’s a year since I first met with Sanjeev Gupta on site at Rotherham to discuss Liberty’s future financing and growth. He’s proved the company can get new finance agreed with creditors for Australia, now they must do the same for the UK.

“Urgent government action is also needed to deal with the growing crisis for firms hit by the crippling rise in their energy costs. British Ministers have so far washed their hands of this growing crisis, when governments in the rest of Europe have stepped in to support their industry, even though their steelmakers have lower energy costs.”

Mayor of South Yorkshire Dan Jarvis said: "This is a welcome announcement for the steel industry and South Yorkshire, which will get operations up and running at two key sites in our region.

"Steel is a strategic sector for the UK economy and with the right support can have a bright future - providing good jobs and prosperity with the transition to green steel.

"That's why we need industry, government and trade unions to continue working together to safeguard steel's future, protecting jobs and businesses in the supply chain for the long-term."

Roy Rickhuss CBE, General Secretary of Community, the steelworkers’ union, said: “This news is well overdue, but it’s an important step in the right direction and demonstrates that GFG can raise funds for the UK. Huge challenges remain but the workforce is ready to get back to making the best steels money can buy, and the £50 million injection will enable us to restart steelmaking.

"The Government must play their part and act now to protect our industry from the consequences of soaring energy prices. Other European countries have already acted, and Britain’s steelworkers want to know why our politicians are sitting on their hands. Brexit was supposed to make it easier for the Government to back British industry and British jobs, but we’re just seeing the same old hand-wringing and excuses for doing nothing.”

Liberty website

Images: Liberty

Read more...

News: Steel firm meets with unions following fears over future funding

Liberty Steel has met with unions this week following reports in the national media that lender Greensill Capital filing for administration could have serious knock on effects for the steelmaker and its significant operations in Rotherham.

The firm has made substantial investments in the Rotherham steel operations it acquired for £100m from Tata Steel in 2917. In 2018, HRH Prince Charles switched on the second Electric Arc Furnace, the "N Furnace" at Aldwarke, and various upgrades to the plant has enabled the business to more than double production at Rotherham to over 500,000 tonnes per annum.

Redundancies were announced at the start of 2020 but the production of its new rebar products started in Rotherham recently. Only last December Liberty committed £60m to boost production to over one million tonnes per annum.

Reports have linked Liberty's owning group, GFG Alliance, to Greensill, a specialist in invoice financing that operates with less regulation than the traditional banks.

Chris Laverty, Trevor O’Sullivan and Will Stagg of Grant Thornton UK LLP were appointed as joint administrators of Greensill Capital (UK) Limited and Greensill Capital Management Company (UK) Limited on March 8.

Advertisement
Steel unions – Community, Unite and GMB – met with Sanjeev Gupta, the executive chairman of GFG Alliance, to seek assurances on behalf of members, and to request full transparency on the challenges facing Liberty Steel.

The unions said that the meeting was "positive and constructive," and that the group intends to secure a refinancing of the debt to provide the business with the necessary liquidity going forward.

A joint statement from the unions said: "The unions have told Mr Gupta our priority is to secure the future of all Liberty Steel’s UK assets, and to this end all options should be considered. Liberty Steel is a strategic business for the UK, producing high-quality steels for sectors of the economy including defence, energy, aerospace and engineering. Liberty Steel is also a low-carbon steelmaker, and the assets must be central to any strategy to decarbonise our steel industry.

"Last week the Business Secretary, Kwasi Kwarteng, convened a meeting of the Steel Council to bring new focus on supporting our sector to decarbonise. We have been encouraged by government’s commitment to taking on this challenge, and the growing consensus that to build back better and greener we need a strong and sustainable steel industry. No other UK company can produce the specialist steels made by Liberty’s UK operations, and so a future must be found to prevent us having to rely on high-carbon imports from countries that don’t play by the same rules.

"Given the strategic importance of Liberty’s steel operations, and their fundamental importance to delivering the UK’s climate objectives, we believe government must take an active role to facilitate a comprehensive solution that safeguards the future and protect jobs."

It added: "We recognise Mr Gupta’s desire to see Liberty Steel succeed, and recognise also his personal contribution in giving distressed UK steel assets a new lease of life."

The BBC caught sight of Sanjeev Gupta’s letter to staff this week which said GFG had adequate funding for its current needs but parts of the UK business face challenges.

Higher energy costs and a business rates system that restricts investment have been joined by a downturn in the global aviation industry caused by the Coronavirus pandemic. Speciality steel made in South Yorkshire supplies many of the leading aerospace manufacturers.

Sarah Champion MP, Member of Parliament for Rotherham, said: "Liberty has pointed to weakness in the aerospace sector as a factor in the performance of its UK operations. I raised this issue in Parliament on Monday and have been calling for broader Government support for the aerospace sector throughout the pandemic. It is particularly disappointing to see issues about which the Government has been repeatedly warned being cited as contributing to the uncertainty facing Rotherham’s steel workers.

"Since becoming an MP eight years ago I have been urging the Government to address the underlying barriers that have affected Britain’s steel industry. The Government must commit to resolve issues with business rates, high energy costs and government procurement to enable British steel not only to survive but to thrive.

"I continue to do all that I can to protect jobs in Rotherham. Steel is a vital strategic industry, a major local employer, and a fundamental part of our town's identity. The Government must actively engage with these issues and work to secure a strong, profitable future for steel in Rotherham."

Liberty Steel website

Images: Liberty Steel

Read more...

News: Rotherham NHS subsidiary talks halted

Rotherham Hospital bosses have shelved plans to form an NHS subsidiary company.

Rothbiz reported in October on consultants, Grant Thornton, being awarded a contract for support in setting up a Wholly Owned Subsidiary Business of The Rotherham NHS Foundation Trust.

Under severe financial pressure, some NHS trusts in England are seeking to save money by creating wholly owned subsidiaries, also known as subcos, companies to deliver services, including facilities and estates. Unions have called the move, "backdoor privatisation" and warned that trusts use the subcos to employ staff without NHS terms and conditions.

NHS Improvement, the national regulator, ordered a temporary stop asking trusts to "pause any current plans to create new subsidiaries or change existing subsidiaries" adding that it will consult on a new regulatory approach in October and issue new guidance.

Having helped organise meetings between hospital staff, union representatives and the Trust's chief executive and chair to outline their concerns, local MP, John Healey says that the plans have now been shelved.

Advertisement

John Healey, Wentworth and Dearne MP, said: "I welcome the decision by Rotherham NHS Foundation trust to call a halt to the proposals, it is sound sense for our hospital services and staff who work there.

"It's thanks to the hard work of NHS staff and unions who, together with MPs, have forced the hospital board to think again on the plans which had the potential to create a two-tier workforce.

"The fact that hospitals are even having to consider such complicated schemes to save money shows how stretched NHS finances have become."

Lynn Monk, branch secretary of UNISON Rotherham Health said: "The UNISON branch are very grateful for the support we received from John as well as the wider public of Rotherham in opposing the transfer of staff to the Wholly Owned Subsidiary.

"They realised that it would undermine the staff pay and pensions but importantly could have resulted in the wholesale transfer of many more staff out of the NHS, privatisation by the back door.

"UNISON members stood firm against it,‎ bolstered by the support from John and his colleagues."

Rotherham NHS Trust website

Images: Rotherham NHS Trust

Read more...

News: Rotherham NHS told to halt subsidiary talks

Local MP John Healey says any plans to form an NHS subsidiary company at Rotherham Hospital should be halted.

Under severe financial pressure, some NHS trusts in England are seeking to save money by creating wholly owned subsidiaries, also known as subcos, companies to deliver services, including facilities and estates. Unions have called the move, "backdoor privatisation" and warned that trusts use the subcos to employ staff without NHS terms and conditions.

Last month, NHS Improvement, the national regulator, ordered a temporary stop asking trusts to "pause any current plans to create new subsidiaries or change existing subsidiaries" adding that it will consult on a new regulatory approach in October and issue new guidance.

John Healey, MP for Wentworth and Dearne, said: "The Rotherham hospital board must now set aside any plans it has for setting up an NHS subsidiary company. Since the idea was first floated, I've voiced my concerns directly with the chairman and chief executive. It would create a two-tier workforce and smacks of a dodge to avoid paying VAT. So I welcome the NHS nationally calling a halt on these local hospital companies.

"It's a sign of just how stretched NHS finances have become that hospitals are reaching for ever more complicated schemes to try to save money."

Advertisement

In May, The Rotherham NHS Foundation Trust, awarded a £192,000 contract to consultants, Grant Thornton for support in setting up a Wholly Owned Subsidiary Business of the Trust.

The tender documents stated: "We require a provider who has experience, preferably of working with NHS Foundation Trusts, in setting up subsidiary companies to create alternative vehicles for service delivery across a number of existing Trust services. We expect the provider to support in a project management capacity bringing knowledge and experience of similar situations to help ensure we are able to make a successful transition of services to the Wholly Owned Subsidiary meeting all legal, regulatory, financial and sound governance principles and requirements."

It is thought that the services being considered as part of the subsidiary discussions were essential core areas such as porters and domestic staff.

Over the summer, local unions submitted a petition signed by 1,438 individuals expressing their opposition to the establishment of a wholly owned subsidiary by the Trust.

The NHS Trust serves the health needs of the borough and delivers care at Rotherham Hospital, as well as community-based sites and directly in patients' homes. It employs over 4,000 staff with an annual turnover of over £215m.

The original plan for the budget in 2017/18 had been a deficit of £13.6m, which was reforecast with the Regulator in January 2018 to a deficit of £22.3m. The Trust has set a financial year end deficit for 2018/19 of £20.3m.

Rotherham NHS Trust website

Images: Rotherham NHS Foundation Trust

Read more...

News: Rotherham Council considers support to stop Trump's steel tariffs

Councillors in Rotherham are condemning the 25% tariffs imposed on steel imports to the US, a move that could affect South Yorkshire expansion plans by Liberty Steel.

US President Donald Trump made the tariff announcement in February and from the beginning of June, America imposed a 25% tax on steel and a 10% tax on aluminium from the EU, Mexico and Canada.

The EU is the UK steel sector's biggest market but nationally 250,000 tonnes of steel was exported to the US in 2017 which amounts to £360m of exports.

In March, John Healey, Wentworth and Dearne MP, whose constituency includes Liberty Speciality Steel's Aldwarke plant, wrote to Dr Liam Fox MP, Secretary of State for International Trade, setting out his concerns that a 25% tariff could halt Liberty Steel's expansion plans.

A motion is set to be put before the Council next week that notes with alarm the imposition of 25% tariffs which it believes will be harmful both to the US and global economies.

Advertisement

The motion, put forward by Cllr. Stuart Sansome, a retired steelworker and union branch secretary, asks for members to support a position where "the Council resolves that the protectionist policies of the current US administration be condemned, that the government be urged to make the strongest possible representations on behalf of the UK steel industry, and that the Community Union's "Stop Trump Tariffs" campaign be supported."

Exports to the US account for almost 12% of revenue for Liberty Speciality Steel in Rotherham and the introduction of a 25% tariff could mean the business would have to re-consider plans to increase exports to the US.

Liberty formally completed a £100m deal to acquire the Speciality Steels division of Tata Steel UK last year. It is undertaking a multi-million-pound investment by the Liberty House Group – a member of the GFG Alliance - that is creating 300 new jobs at Rotherham and its sister plant in Stocksbridge.

Roy Rickhuss, General Secretary of Community, the steelworkers' union, said: "Trade unions across the world must stand together in opposition to these measures. The problems of steel dumping will not be solved by unfair tariffs, and steelworkers in the UK and USA must not fall into the trap of believing rhetoric from the likes of Donald Trump."

Images: Liberty Speciality Steel

Read more...

News: Council's jobs hope for Fortem

Rotherham Council bosses are hoping that the restructuring of one of its main housing contractors will lead to more jobs being created in the borough, despite around 20 staff currently at risk of redundancy.

In 2016 Willmott Dixon's property repairs and maintenance specialist Willmott Dixon Partnerships announced that it was changing its name to Fortem.

From a base at Templeborough, Fortem works with Rotherham Council to deliver a repairs and maintenance service to 10,500 homes in the areas of Wentworth South, Wentworth Valley, Rother Valley West and Rother Valley South.

In 2010 the company secured the five and a half year contract worth £58m with possible extensions up to 2020.

Advertisement

Fortem recently announced that it was preparing to make around 20 of its Rotherham staff redundant. The redundancies are principally in administration and managerial roles and some of the work is to be transferred from Rotherham to the organisation's head office in Hitchin, Hertfordshire.

At the same time, discussions are ongoing around Fortem creating a new academy and bringing additional jobs to the borough.

The Improving Places Select Commission at Rotherham Council recently discussed the work of Fortem, along with fellow contractor, Mears.

Mark Nearney, housing contract services and development manager at Rotherham Council, updated the meeting on the announcement.

Nearney said: "Overall, in the package, there will be job creation from Fortem with the "Learning Academy for Life." The net figure is that there will be more jobs in Rotherham. Yes, it'll be different types but it'll be healthy, full time employment, but some of the admin work will move down to Hitchin. We'll be keen to make sure that that doesn't affect service delivery."

Advertisement

Cllr. Dominic Beck, Cabinet Member for Housing at Rotherham Council, added: "We've paid a lot of attention to this. It is a large contractor of ours and we need to be managing them and what they propose to do with their redundancies.

"I've spoken to people at Fortem and there will be some really positive news around the academy that they will be establishing with Rotherham College down in Dinnington, which will create 13 brand new jobs and a further 20 jobs in Rotherham at what they are calling their Northern Support Hub to support other contracts that they have got in the North.

"They are obviously undergoing some restructuring nationally as an organisation and we do have a relationship with them that is challenging. We know what happens when a contract isn't managed well but we have challenging, professional relationships with Mears and Fortem where we can have these sorts of discussions.

"Our thoughts are with those in danger of losing their jobs but hopefully there will be some positive news as well and there is a possibility of some of those people being redeployed."

The local branch of the Unite union said that it was preparing for industrial action having approached Fortem over the redundancies only to be told that the union had been derecognised.

Fortem website

Images: Fortem

Read more...

News: Union strikes Rolls-Royce pay deal

Unite, the country's largest union, is hailing a three year pay deal at Rolls-Royce in Rotherham, one of the largest deals that the company has agreed in recent years.

The world-renowned engineers operate the most advanced turbine blade casting facility in the world on the Advanced Manufacturing Park (AMP) in Rotherham. The £110m Advanced Blade Casting Facility (ABCF) manufactures turbine blades for the latest generation of aero engines.

Signing the deal last week, Unite said that the package which will benefit about 120 staff below the management and guarantees a minimum of 17% over three years.

The union said that the deal was a recognition that the pay rates were among the lowest across the group and this had resulted in workers at the South Yorkshire site leaving for better jobs.

Advertisement

Unite regional officer Doug Patterson said: "While small in number in terms of the workforce, it is one of the largest deals Rolls-Royce has agreed in recent years.

"It has come about because the company finally accepted what Unite had been saying for some time that paying the lowest rates in the group was contributing significantly to the high rate of attrition."

Officially opening in 2015, two types of turbine blades are manufactured at the Rotherham facility: high pressure (HP) and intermediate pressure (IP) single crystal blades. The blades are "grown" in a special process which ensures that they are created from a single metal crystal to maximise their strength. These SX blades generate the power of a Formula 1 racing car.

There are over 65 advanced turbine blades in every iconic Trent engine and 182 turbine blades in each Trent XWB engine.

Patterson added: "We regard this pay deal, following tough negotiations, as a success in these challenging economic times and it demonstrates the strong value of union membership.

"What individuals will receive depends on whether they are "shop floor" or "professional", but we estimate that for most employees that it will be a minimum of 17% over three years."

Rolls-Royce website

Images: Harworth Group

Read more...

News: Liberty House welcomed in Rotherham

The announcement of investment and new jobs from the new owners of the speciality steel making sites in South Yorkshire has been welcomed.

An official handover took place this week after international industrials and metals group, Liberty House formally completed the £100m deal to acquire the Speciality Steels division of Tata Steel UK.

John Healey, who is standing again for the Wentworth & Dearne constituency which covers the Aldwarke plant, said: "It's great to see the sale go through. For the first time in years, Rotherham steelworkers and their families have some hope for the future.

"Liberty House has pledged the investment, jobs and marketing that can continue specialty steel's success. They're aiming for more jobs, fresh overseas markets, expansion of the Thrybergh bar mill and to boost steel-making in the main Rotherham plant.

"I will carry on working to back the new owners and the workforce, and keep on the Government's case about support for our UK steel industry. Liberty is backing British steel-making, and Government must now play its part on energy costs, business rates, skills funding and a strong buy-British bias in big Government projects."

Advertisement

Sarah Champion who is bidding to remain the MP for Rotherham, added: "I am delighted and relieved that Liberty House recognises the potential of speciality steel in our region. The fact they are planning to expand operations and invest in more jobs proves their long-term commitment and is most welcome.

"Today's news is testimony to the years of campaigning and negotiations by workers, unions, local Labour MPs and Tata Steel.

"Going forward, we still have much to fight for to allow the steel industry to flourish. Two years after we got the Secretary of State for Business to attend our steel summit in Rotherham, the Government is no further on with resolving their high energy prices or unfair business rates - which means British steel can’t fight on a level playing field. We need free, but crucially, fair trade to markets such as the EU and USA, as well as being robust on anti-dumping from China and Russia.

"Our steel industry deserves more than warm words from Government. We need real action."

Roy Rickhuss, general secretary of the steelworkers' trade union, Community, said: "The completion of the sale will bring some welcome certainty to a workforce that has faced a tough time over recent months and years. It's testament to the skills and commitment of the steelworkers and the trade union leadership within the business that Liberty has taken on Speciality Steels and given it new hope. This also demonstrates that with the right vision there are opportunities for the UK steel industry to grow. We will continue to work closely with Liberty House in the coming months to ensure that their growth plans and investment deliver the new jobs and the sustainable future for the business that is promised.

"To support and guarantee the success of the business, all parties in the general election must demonstrate a commitment to a joined-up industrial strategy, which will create the environment where Speciality Steels and other steel businesses can thrive. That's why we will continue to speak up for steel communities and to campaign to Save our Steel."

Liberty House website

Images: Sarah Champion / twitter

Read more...

News: Unions demonstrate at Rotherham construction site

The Danish company behind the design, manufacture and operation of the new £150m biomass power plant in Rotherham has been accused of undercutting the pay rates of UK construction workers by leading unions.

A plant that will generate heat and power from carbon-neutral renewable wood pellet fuel is currently being constructed at the Firth Rixson Ickles Works at Templeborough where land and disused buildings where purchased in March 2011.

Copenhagen Infrastructure Partners acquired 100% of the project that was brought forward by the Brite Partnership and a joint venture between Interserve, the international support services and construction group, and Babcock & Wilcox Vølund was awarded the contracts to work on the project.

Construction unions Unite and GMB are holding a demonstration at the site today, claiming that workers are being paid up to 61% below agreed industry rates, with some workers being paid just the minimum wage and financing their own accommodation and travel. A similar protest took place last year.

Babcock & Wilcox Vølund A/S, the Danish subsidiary of the giant US Babcock & Wilcox Company, will operate the biomass power plant. Interserve is constructing the plant.

Babcock & Wilcox Vølund sub-contracts large chunks of their work to Croatian company Duro Dakovic which pays workers as little as the minimum wage of £7.50 an hour. The industry agreement (NAECI) has a basic rate of £16.97 an hour with an hourly bonus of £2.37 an hour.

Advertisement

Copenhagen Infrastructure Partners is the investment arm of Pension Denmark and GMB and Unite held a protest outside the offices earlier this week to draw attention to the ongoing exploitation and undercutting that it is financing.

The Danish government has clear policies in place, due to the way it has interpreted the Posted Workers Directive, which prevents these forms of undercutting and exploitation occurring in Denmark. However this does not legally prevent Danish companies from exploiting workers when they operate abroad.

Phil Whitehurst, GMB National Officer for Construction, said: "These engineering, procurement and Construction (EPC) management companies, funded primarily by Copenhagen Infrastructure Partners - the investment arm of Pensions Denmark, have maintained they will not support any form of undercutting or exploitation by their supply chain.

"We have presented evidence to them highlighting exploitation and social dumping practices that, if carried out in Denmark, would carry a custodial sentence.

"We have endeavoured to negotiate with the construction companies responsible, but they refuse to sign up to national agreements in the UK, such as NAECI, which would put everyone on a level playing field.

"They appear to be worried the audit system would expose allegedly corrupt practices of exploitation and social dumping."

Bernard McAulay, Unite national officer for construction, added: "Construction workers are angry that Danish companies are exploiting workers and undercutting pay rates, to boost their profits.

"This exploitation cannot be allowed to go unchallenged; it is vital that workers and the general public know what companies are trying to get away with on major projects and ensure their misdeeds are brought to account.

"Unite will leave no stone unturned in our fight to end exploitation and undercutting. Companies involved in these practices need to appreciate that there will be no hiding place."

Templeborough Biomass Power Plant website

Images: GMB / twitter

Read more...

News: Strike threat on Rotherham trains

Members of rail union, the RMT, have voted for action on Northern Rail services with a date for a strike set for March 13.

Guards and driver members have voted for both strike action and action short of a strike after the franchise operating company, Arriva Rail North, failed to give assurances on the future role of the guard on their services.

Northern provides rail services at Rotherham Central Station.

Workers are concerned over the potential introduction of trains with doors operated by drivers (Driver Only Operation), favoured by the Department for Transport. Arguments centre on cost-cutting and safety.

RMT has now confirmed industrial action as follows, asking members not to book on for any shifts between 00:01 hrs and 23:59 hrs on Monday March 13. Members voted by 83.6% for strike action and by 93.5% for action short of a strike.

In addition, the union is kick starting a renewed campaign, involving the general public and targeting politicians across the area served by Arriva Rail North aimed at maximising political and public support for RMT's fight for a guaranteed guard on the company's services.

Advertisement

Mick Cash, General Secretary at the RMT, said: "RMT members have voted by a massive majority for both strike action and action short of a strike on Arriva Rail North in a dispute which is all about putting public safety before private profit. The company now has the best part of two weeks to sit down with us, address the core issues at the heart of this dispute and negotiate a settlement before the action commences.

"The company's intransigence has forced our hand and given us to option but to announce industrial action. The disruption to services will be entirely down to Arriva Rail North reneging on their earlier commitments. The union remains available for genuine and meaningful talks and we expect the company to take up that offer as a matter of urgency."

The union claims that Arriva Rail North has reneged on previous positions and responded to questions over providing a second person on all passenger services by saying: "We are not in a position to offer either of these guarantees at this present time."

A spokesman for Northern said: "As our modernisation proposals are still in the early stages, it is a shame that RMT has announced strike action for Monday 13 March. Our aim is to reach a constructive resolution and we urge RMT to continue the talks we have already started.

"We want to protect jobs and pay, and during our recent discussions we offered to consult fully with our people, customers and key stakeholders.

"If strike action goes ahead, our customers can be reassured that we have plans in place to keep them moving. During any strike action, we plan to run a revised service and will shortly release further information."

Images: SYPTE

Read more...

News: Tata Steel union workers back pension proposals

Union members at Tata Steel sites in the UK, including in South Yorkshire, have voted to accept a proposal to close the British Steel Pension Scheme (BSPS) to future accrual.

The Speciality Steel sites in South Yorkshire are set to be sold after Liberty House closed a deal with Tata Steel UK to acquire the business for a total consideration of £100m. The new owners will need to honour the new pension arrangements as part of the deal.

Last year, the Government launched a consultation on changes to the pension scheme - the huge pension liability with a reported £700m deficit that was seen as a deal-breaker for prospective buyers of Tata Steel's UK assets.

The consultation followed intense discussions between Tata Steel, the UK government, the pension scheme trustees and regulators to find the best option for members of the scheme.

Eight months after Tata announced their original intention to sell its UK steel assets, the firm made a commitment to secure the future of jobs and production at Port Talbot and other steelworks across the UK.

The ballot paper set out that the company's proposals to secure a sustainable future for the UK business. Key elements include £1 billion of investment over ten years, a commitment to running the blast furnaces at Port Talbot, an employment pact offering protection against compulsory redundancies, and the introduction of a Defined Contribution Pension Scheme, with maximum employer contributions of 10%, following the closure of the BSPS to future accrual.

Advertisement

The assurances are conditional on a sustainable solution for the BSPS, Tata Steel UK remaining solvent, and no industrial action in connection with the proposal.

Trade unions also secured a guarantee from Tata that commits Liberty House to honour the new defined contribution pension arrangements. This means that under a new owner, union members in Speciality Steels would be entitled to the same pension arrangements as members in Tata Steel UK, with employer contributions of up to 10%.

Members of the Community Union voted 72.1% to accept the proposals, with members at Unite, 75.6% in favour. GMB members voting yes came in at 74.0%.

Roy Rickhuss, general secretary of Community, said: "This result provides a mandate from our members to move forward in our discussions with Tata and find a sustainable solution for the British Steel Pension Scheme.

"Steelworkers have taken a tough decision and have shown they are determined to safeguard jobs and secure the long-term future of steelmaking. Nobody wanted to be in this situation, but as we have always said, it is vital that we now work together to protect the benefits already accrued and prevent the BSPS from free-falling into the PPF [Pension Protection Fund]."

Tata Steel website

Images: Tata Steel

Read more...

News: Tata Steel proposes changes to pension scheme

Tata Steel UK has reached an agreement with trade unions and will start consultation with its employees on a proposal to close the British Steel Pension Scheme to future accrual.

The Indian-owned steel maker has also announced outline plans to invest £1 billion in its remaining UK assets - which is unlikely to include the Speciality Steel sites in South Yorkshire.

Earlier this year, the Government launched a consultation on changes to the British Steel Pension Scheme (BSPS) - the huge pension liability with a £700m deficit that was seen as a deal-breaker for prospective buyers of Tata Steel's UK assets.

The consultation followed intense discussions between Tata Steel, the UK government, the pension scheme trustees and regulators to find the best option for members of the scheme.

Eight months after Tata announced their original intention to sell its UK steel assets, the firm has now made a commitment to secure the future of jobs and production at Port Talbot and other steelworks across the UK.

The new announcement follows the announcement at the end of last month over exclusive negotiations between Tata Steel and Liberty House Group regarding the sale of Tata's Speciality Steels division, which includes facilities in Rotherham.

Advertisement

Previous proposals to amend scheme benefits in order to avoid entering the PPF would be difficult to deliver. The Pension Protection Fund (PPF) is the safety net that provides compensation to members of eligible defined benefit pension schemes when things go wrong.

Tata Steel will begin a consultation on the closure of the BSPS to future accrual, replacing it with a defined contribution scheme with maximum contributions of 10% from the company and 6% from employees.

The scheme has 130,000 members. Of these, 14,000 are active (i.e. they are currently employed by Tata Steel or another sponsoring employer of the scheme), 32,000 are deferred (i.e. no longer employed by Tata Steel but below the scheme's normal pension age and with a pension not in payment) and 84,000 are pensioners.

A statement from Tata Steel said that: "The company and trade unions have also agreed on the principle that subject to the structural de-risking and de-linking of the British Steel Pension Scheme fund from the business, Tata Steel UK will continue the existing blast furnace configuration in Port Talbot until 2021."

It could see a comprehensive ten year £1bn investment plan to support steel making at Port Talbot and across the UK which has been welcomed by unions that, at the same time, stated that the move to close the BSPS will clearly be of serious concern to all members. A ballot is proposed in the new year.

Roy Rickhuss from steelworker's union, Community, said: "Reaching this stage of the process is a credit to the hard work of our members who never gave up the fight to "Save Our Steel" – it was their jobs on the line and it has been their campaign that has brought Tata to this position.

"This is not the end of the process and it will be for all our members to now vote on this proposal. We will continue to work closely with Tata and all levels of government as we seek to build a sustainable future for Britain's steel industry.

"We recognise that today's announcement does not cover the Speciality Steels business in South Yorkshire or the SAW mills in Hartlepool. We will continue to work hard with the companies involved to secure the investment necessary to ensure those businesses grow and that our members are protected."

Tata Steel website

Images: Tata Steel

Read more...

News: Tata deal welcomed but calls made for audit

Sarah Champion MP has welcomed the announcement over exclusive negotiations between Tata Steel and Liberty House Group regarding the sale of Tata's Speciality Steels division, which includes facilities in Rotherham.

Liberty House and Tata Steel announced yesterday that a letter of intent has been signed and that they expect the £100m acquisition to complete early in the first quarter of 2017.

Reacting to the announcement, the Rotherham MP said: "It is welcome that negotiations for the sale of Speciality Steels have reached this important stage. Speciality Steels is a strong business with huge potential.

"This announcement marks the beginning of an extremely sensitive period for the business as negotiations proceed. Tata have engaged positively with employees and with trade unions during the process thus far and I hope that they will continue to be closely involved and consulted regarding any potential deal.

"Whist this announcement is of course good news, we must ensure that the Government remains committed to supporting our steel industry and that they act to ensure its long-term viability. Some progress on this has been made, but this momentum must be sustained.

"Steel remains a vital strategic industry and I hope that the Government will work with Tata and Liberty House to support Speciality Steel and ensure a viable future for steel in the UK."

Advertisement

The news has also been welcomed by the steel unions such as Community which has worked with Liberty House Group at steel sites across the UK.

Roy Rickhuss, general secretary of Community, said: "After months of uncertainty and delay from Tata, this will be welcome news for the thousands of steelworkers whose jobs depend on the success of this business.

"The number one priority for Community will be ensuring that Liberty have a proper plan to protect jobs and provide the long term investment necessary to grow the business. Crucial to this plan will be ensuring that the business' loyal workforce have a pension plan that provides dignity and security in retirement.

"This is a positive step for the UK steel industry; however there remain huge challenges which government must address. Energy costs, business rates, and procurement rules continue to put British businesses at a disadvantage. Community will continue with our ‘Save Our Steel’ campaign and will work with government and steel producers to secure a long term future for this vital industry."

Unite national officer for metals Harish Patel said that "the devil will be in the detail," adding: "Today's announcement is welcome as we can at last see some movement towards certainty for our members - our key concerns are job security for the workforce; the future of the British Steel pension scheme; and what the investment plans will be from the Liberty House Group going forward.

"Of course, the devil is very much in the detail which is why we will be asking Tata Steel to ensure that we can conduct independent due diligence on its proposals."

Liberty House website

Images: Liberty House

Read more...

News: South Yorkshire steelworkers wait on sale

Steelworkers in Rotherham and Sheffield are being left in the dark as discussions continue over the sale of Tata's Speciality Steels business, unions say.

At the end of March, the Indian-owned steelmaker concluded that it was exploring all options for portfolio restructuring including the potential sale of Tata Steel UK, in whole or in parts. Following a board meeting in July, the steelmaker decided on a separate process for the potential sale of its Speciality Steels business, which until recently employed over 2,000 people at sites like Aldwarke in Rotherham and Stocksbridge in Sheffield.

Tata confirmed the progress of its divestment of the Specialty Steel business and the pipe mills in Hartlepool in its financial results for the quarter to June 30 and it was revealed in September that two bids had been submitted for the speciality steel business in its entirety, including the two businesses in Rotherham (at Aldwarke and Brinsworth Strip Mill).

Senior officials from Community have spent the past week meeting with members at the steelworks and have now called on Tata to come clean on the state of their sales process and let their loyal workforce know what their future will hold.

Advertisement

Roy Rickhuss, general secretary of the Community union, said: "While so much focus is on the sale of Tata's Strip business and the uncertainty surrounding the pension scheme, Community will not allow Speciality Steels to become the forgotten part of the steel crisis. With over 2,000 direct employees and many thousands more in the local supply chain, this business is of huge importance to the South Yorkshire region.

"When Tata announced that they wanted to sell the business, we called on them to act as a responsible seller. The continued lack of information about that process and the worry this has caused amongst their loyal workforce is highly irresponsible.

"Community has always said that we will play our part as a responsible stakeholder in helping safeguard the future of the business, but having committed to involve the trade unions in the sales process, Tata have yet to share details of potential buyers. Speciality Steels has every chance of a bright, profitable future, but this will only be possible if Tata ensure a new owner is able to invest in the business and build a positive relationship with the workforce.

"The months of uncertainty and delays must end today. Tata must come clean about the state of the sales process and fully involve the trade unions in helping to build a new future for this vital industry and its highly skilled workers."

Tata Steel Europe website

Images: Community Union

Read more...

News: Steelworkers want answers

Steelworkers from Rotherham met with representatives from other Tata Steel UK sites in London yesterday to consider issues relating to the ongoing sales process.

The Indian-owned steelmaker concluded in March that it is exploring all options for portfolio restructuring including the potential sale of Tata Steel UK, in whole or in parts. Rothbiz yesterday reported on the muddying waters of the sale process which ranges from selling all of the UK assets together, selling individual units, to Tata remaining in the UK.

Sky News went further and reported that KPMG, engaged by Tata Steel as advisers to the sale process, is understood to have been asked to contact prospective bidders for the Speciality Steel business in South Yorkshire and the pipeline tube operations.

Over 60 reps gathered at the TUC's Congress House to hear from Community's general secretary, Roy Rickhuss and to agree the union's position on a number of issues.

Advertisement

Following the meeting, Community's reps unanimously agreed the following statement which has been sent to Tata Steel management:

Community, the steelworkers’ union, has serious concerns about the integrity of Tata Steel’s sales process. Almost three months have passed since the announcement that Tata intended to sell their UK assets, yet if anything steelworkers and their families are now less certain of their future than ever. Employees, customers and suppliers all deserve to know Tata's intentions. Without all of those groups the steel industry cannot hope to have a successful future.

Tata made it clear they no longer wanted to keep their UK businesses. The UK Government stressed the need for Tata to act as a responsible seller; however it is now unclear whether Tata intend to sell the business at all. Since that first announcement, the trust and good will of Tata’s loyal workforce has been pushed to the limit. If Tata do indeed intend to retain the business, then they need not only to make this clear to their loyal workforce, but also lay out their long term plan for investment in steelmaking. Were Tata to remain, they would have a long way to go in regaining the confidence of steelworkers. Amidst this uncertainly, there also remains the hugely important issue of the pension scheme to be resolved.

It is simply unacceptable that our members are expected to learn more about this process from the media than their own employer. Today workers are reading in the media that Tata are now willing to accept bids for separate parts of the business, despite previously committing to selling the whole business as a going concern. Further to this, some media reports have suggested that Tata does not consider any of the bids that have been submitted to be credible. However the independent steel experts, Syndex, have examined the bids and found a number to be potentially financially robust and credible for the long-term. We believe the next stage of the process should be for bidders to submit to Tata their full and detailed plans for the business. If Tata are continuing with the sales process it is vital they provide bidders with the information and support they need to develop the best possible proposals to safeguard our industry.

The British steel industry is bigger than any one company or government, and as the guardians of the industry we call on Tata to recognise their moral and social responsibilities. Community will continue our "Save Our Steel" campaign, meanwhile Tata and the UK Government must get their act together to end this insufferable period of uncertainty and ensure a future for UK steelmaking.

Community website
Tata Steel website

Images: Tata Steel

Read more...

News: Pension changes key to UK steel industry's future

The Government has launched a consultation on changes to the British Steel Pension Scheme (BSPS) - the huge pension liability with a £700m deficit that could be a deal-breaker for prospective buyers of Tata Steel's UK assets.

The consultation follows intense discussions between Tata Steel, the UK government, the pension scheme trustees and regulators to find the best option for members of the scheme.

At the end of March, the Indian-owned steelmaker concluded that it is exploring all options for portfolio restructuring including the potential sale of Tata Steel UK, in whole or in parts. The formal process began on April 11.

The consultation is seen as the first step in a potential unprecedented change to regulations which would enable the scheme to modify its benefits enabling it become self-sustaining and remain outside of the Pension Protection Fund - the safety net that provides compensation to members of eligible defined benefit pension schemes when things go wrong.

The scheme has 130,000 members. Of these, 14,000 are active (i.e. they are currently employed by Tata Steel or another sponsoring employer of the scheme), 32,000 are deferred (i.e. no longer employed by Tata Steel but below the scheme's normal pension age and with a pension not in payment) and 84,000 are pensioners.

The consultation states that: "According to December 2015 figures, the scheme has assets of £13.3 billion and liabilities based on running on with a solvent sponsoring employer of around £14 billion, so has a deficit estimated at around £700m on a technical provisions basis. However, the scheme is around £1.5 billion short of what would be needed to buy out benefits equivalent to Pension Protection Fund compensation levels (this is known as a section 179 basis in pensions legislation). The deficit to buy out the benefits in full is estimated to be around £7.5 billion."

Proposed changes would enable the Government to cut billions from longer term liabilities by switching the indexation of pension increases from the RPI inflation index to the usually lower CPI measure.

Advertisement

The consultation adds: "Were Tata to sell Tata Steel UK, it is highly unlikely that a purchaser would be willing to take on the pension scheme as a part of the deal – the cost and risk to the purchaser would be too high for a successful sale. The scheme therefore needs to be separated from Tata Steel UK."

Tor Farquhar, human resources director for Tata Steel's European operations, said: "This is an important step forward which would enable a better outcome for the vast majority of members of the British Steel Pension Scheme than the benefits provided by the Pension Protection Fund. The consultation is also an important step that supports the prospect of securing a sustainable future for Tata Steel UK’s 11,000 employees."

The steel trade unions – Community, Unite and GMB issued a joint statement: "It is important that all stakeholders continue to explore all available options that avoid the need for the scheme to go into the PPF, which would be the worst deal for scheme members. We will seek to work constructively with the UK Government and the scheme trustees to deliver the best possible deal for our members. We need to ensure that there are cast iron safeguards in place so this unique situation does not result in employers dodging their pensions responsibilities.

"It is important to remember that Tata Steel remains the employer and sponsor of the BSPS. They have significant legal, social and moral responsibilities with regards to the British steel industry and those men and women who have worked and continue to work within it."

Strike action at Tata Steel was averted last year when members of all four unions at Tata Steel voted to accept changes to the BSPS which saw the scheme remain open.

Tata Steel website

Images: Tata Steel

Read more...

News: Tata board set to meet as steelworkers march on London

Sajid Javid, the Secretary of State for Business, Innovation & Skills, has met with bosses at Tata in Mumbai to discuss the sale of its UK assets ahead of a planned board meeting today.

The Indian-owned steelmaker concluded that it is exploring all options for portfolio restructuring including the potential sale of Tata Steel UK, in whole or in parts. The formal process began on April 11 with contact made with 190 potential financial and industrial investors worldwide.

Seven bids were immediately taken forward to the next stage of the sale process whilst Tata Steel Europe clarified outstanding points with a number of other parties who submitted an expression of interest. There have been constant rumours since the sale process started of who the bidders are, and even Tata themselves may consider keeping some UK assets.

Mr Javid said that there were "several credible bidders in play" and that he was "determined to keep momentum and find right buyer."

Angela Eagle MP, the Shadow First Secretary of State and Business Secretary, said: "We sincerely hope a suitable bid can be found which preserves the blast furnaces, the 15,000 high-skill jobs, and our domestic steel-making capacity.

"But the Tory Government must address the underlying challenges to the industry; on energy, business rates, procurement, and most importantly, preventing Chinese dumping. The Government must stop kow-towing to China and start standing up for our steel."

Hundreds of steelworkers from across the country, including from South Yorkshire are marching through the streets of London to demand the Government firstly ensure the responsible sale of Tata Steel's UK assets and secondly deliver a proper industrial strategy that supports the entire steel sector throughout the current crisis and into a profitable future.

Speaking ahead of the march, Roy Rickhuss General Secretary of Community - the steelworker's union, said: "George Osborne once said that he wanted "a march of the makers", well today he's got one. We are the steel makers and we are marching for our futures.

"For months, the "Save Our Steel" campaign has engaged hundreds of thousands of people across the UK. This march will bring steelworkers to London to focus all our attention on delivering a clear message to government: save our jobs, support our communities and deliver the fantastic future for British steelmaking we know it can have.

"Over the past few weeks I have visited every steelworks at risk. I have listened to the hopes and fears of hundreds of steelworkers and I will make sure those views are heard when Tata is assessing the various bids."

Tata Steel Europe

Images: Community Union

Read more...