Essar Oil staff at Stanlow Refinery set for strike action

Further talks are scheduled in the industrial dispute with Essar over pay, pensions and unpaid bonuses

Employees at Essar's Stanlow Refinery have voted in favour of industrial action.

According to trade union Unite, over 400 workers based at the Ellesmere Port refinery and who are members of the union took part in a ballot for strike action over pay, pensions and unpaid bonuses.

The result of the ballot was announced on Wednesday (September 29), and revealed that 98 per cent of those who took part were in favour of industrial action at the refinery, which is owned by Essar Oil UK.

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Union members say they are in dispute on three central issues: failure of the company to honour the 2019 signed pay agreement, the failure of the company to pay the workers a bonus in 2019/20 and 2020/21 and the proposed closure of the final salary pension scheme.

The company has now agreed to begin talks to resolve the dispute, with Unite saying the company has agreed to delay the proposed closure of the pension scheme.

Unite regional coordinating officer Mick Chalmers said: “Our members play a critical role in keeping the economy moving and deserve fair pay, bonuses and pensions for the vital role they play.

“Our members cannot and will not accept any attacks to their terms and conditions after working tirelessly through a global pandemic. Unite has created space and opportunity for Essar to return to the negotiating table.

“Make no mistake, if Essar abuses this gesture or fails to make an acceptable offer, strike action will be called."

Essar UK Oil responded by saying it welcomed the trade union's decision to engage in further talks, and that it would be 'business-as-usual' at Stanlow.

A spokesperson for Essar UK Oil said: “Essar notes the result of the Unite ballot. We welcome Unite’s decision to engage in further talks and its agreement to suspend any industrial action while talks are ongoing.

"Business-as-usual operations continue at Stanlow, with no disruption to supply."

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The threat of industrial action comes after reports suggested that Essar Oil UK was on the brink of collapse as the deadline approached for the firm to pay hundreds of millions of pounds worth of unpaid tax to HM Revenue & Customs.

The company responded to what it called 'press speculation' and stated that it 'remained confident in its future'.

Following this, the company released another statement a short time later revealing that a deal had been struck with HM Revenue and Customs (HMRC) which would help the firm 'stabilise its balance sheet'.

Essar Oil UK confirmed it had entered into a 'new time pay agreement' with the HMRC which outlines a 'phased payment schedule', in line with the company's revenues.

The agreement means the firm is 'therefore confident' that it will close the last mile financing in the next few months after it raised $1.1 billion earlier this year.