Workers’ union Unite and Peel Ports group confirm strike over pay to start 19 September
Unite the Union announced that more than 560 workers at the port of Liverpool are planning to take strike action from 19 September to 3 October. Liverpool is the latest UK port to be hit by strike action over wages, as inflation surges in the UK.
Peel Ports Group said they had put forward an offer to increase wages by more than 8%.
"The move is designed to disrupt operations at the UK container port after a pay package of 8.3% was rejected by the union, and following demands for greater pay increases," the group said.
In its statement, Unite referred to a pay rise offer of 7% and said that, with the "real rate of inflation at 12.3% and rising, this is a pay cut". Unite also said Mersey Docks and Harbour Company (MDHC) which is part of Peel Ports Group, had failed to "honour the 2021 pay agreement," noting the lack of a "promised pay review" and failure to improve shift rotas.
“Workers across the country are sick to death of being told to take a hit on their wages and living standards while employer after employer is guilty of rampant profiteering. MDHC needs to think again, table a reasonable offer and fulfil its previous pay promises,” Unite said.
On 17 August 2022, the Bank of England reported inflation at 10.1% across the UK and several projections show inflation rising further through 2022 and early 2023. The British Chambers of Commerce has projected inflation reaching 14% by the end of 2022, when it says the economy is likely to be in a recession. Goldman Sachs has warned of inflation hitting more than 22%, if gas prices remain high through the cold-weather months in Europe.
Peel Ports Group chief operating officer David Huck said, “Despite a series of meetings, we are very disappointed Unite the Union has confirmed strike action by its Port of Liverpool Containers’ members. While we fully appreciate our colleagues’ concerns on the rising cost of living, we have proposed an industry-leading pay package of 8.3%. This is all in addition to a 4.5% increase in 2021, with improvements to shifts, sick pay and pensions, and following continuous and above-average pay awards over the last 10 years."
“Our pay offer is well above the national average and represents a sustainable position for the business, taking into account stagnation in the container market, worldwide economic pressures, the conflict in Ukraine and global shipping disruption. We will continue to urge Unite the Union to keep talking with us so together we can find a resolution to avoid action that will be bad news for the sector, businesses and families, with the effects being felt for many months to come, at a time when container volume demand has started to reduce," he said.
Peel Ports Group’s most recent filings with the UK’s Companies House show the business posted a profit of £141M (US$171M) during the 2020-2021 fiscal year, which ran from April 2020 to March 2021 and covered the first year of trade disruption and dislocation due to the coronavirus pandemic as well as increased disruption at UK ports from the impact of Brexit. In 2019, Peel Ports received UK Government funding to boost measures it had taken to improve resilience ahead of the UK’s departure from the EU.
The documents, filed in January 2022 with Companies House, also show the group’s total financial takings decreased from £792M to £595M, which the business attributed to the Covid-19 pandemic and the sale of its marine support services business in July 2020. The accounts also show the number of people employed by the group dropped by roughly half, from 3,135 to 1,612 during the fiscal year. Peel Ports Group’s profits from 2020-2021 were notable in comparison to the business’ losses in FY 2019-2020 of nearly £100M.
MDHC Peel Ports Group is, as Unite the Union pointed out, headquartered in the Isle of Man, a UK tax haven and majority owned by British billionaire John Whittaker, who is chairman of the Peel Group, which holds stakes in property, media and infrastructure businesses such as port operations and management.
"Today we have over 200 CVs on file from applicants awaiting recruitment opportunities at the Port of Liverpool,” Peel Ports Group said. "The strike action will severely disrupt both shipping and road transport in Liverpool and the surrounding areas.
More strikes are set to be scheduled in the coming weeks if MDHC fails to put forward an acceptable offer to the workers," Unite said.
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