Unite has announced that over 400 offshore members employed by Bilfinger UK Limited have supported taking strike action in an escalating dispute over pensions.
A majority of Bilfinger workers have emphatically backed strike action in a fight to secure a fairer pension deal.
Unite members are demanding that Bilfinger move to a gross earnings pension scheme like many other private sector and offshore companies because workers are losing out on thousands of pounds in pension contributions due to their pattern of pay being weekly.
The majority of Bilfinger workers are enrolled in a statutory minimum workplace pension scheme where the company pays a maximum three per cent of 'qualifying earnings' contribution.
The qualifying earnings income is between £6,240 and £50,270. Anything above or below that does not factor in pension contributions. It means Bilfinger’s annual pension contribution is capped at £1,320.90 per year irrespective of income.
Unite estimates that around £2254 is being lost every year in employer pension contributions when compared with a gross salary pension scheme for a worker earning £59,580.36.
Sharon Graham, Unite general secretary, said: 'Bilfinger is disadvantaging hundreds of Unite members by paying lower pension contributions to workers based simply on how they are paid.
'Unite members are losing out on thousands of pounds every year in company pension contributions compared with other workers, which is completely unacceptable. We will back our Bilfinger members every step of the way in their fight to secure a just and fair pension settlement.'
The UK private sector average pension contribution is estimated at six per cent while companies involved in the Caterers Offshore Trade Association (COTA) contribute 6.5 per cent of full salary to pension schemes.
A number of oil and gas operators are set to be hit by any industrial action involving Bilfinger offshore members including BP, CNR, Ineos Ithaca, and TAQA (see notes to editors).
Bilfinger UK Limited recorded profits of £14m in 2023 following a £7m profit in 2022.
Paula Buchan, Unite industrial officer, added: 'Unite’s Bilfinger membership are determined to secure a fair pension deal. Hundreds of workers who do equally highly skilled and expert work in the offshore sector are being treated unfairly when compared with other colleagues employed by the company who are paid on a salary basis.'
'Dozens of offshore installations will now be hit by widespread disruption due to workers being treated in an unacceptable and unfair way. The blame for that strike action lies squarely at the door of Bilfinger HQ.'
If Bilfinger fails to act on the pensions issue then strikes will be called in the coming weeks.
Source: Unite
