Scottish Water workers down tools

Workers at Scottish Water begin industrial action today (10 November) after voting “overwhelmingly” in support of a strike relating to pay.

The three-day walkout was voted for by 86% of union members working at the publicly-owned utility. Workers have also refused to do overtime and out-of-hours work until January.

Union members committed to weekly walkouts after negotiations could not resolve a pay dispute.

The company sought to change how it structures pay grades and salaries. While staff supported the move to update approaches that had been used for 21 years, they were dissatisfied with the offer. Scottish Water defended the proposal as being more generous than public sector pay.

The proposed system would offer greater flexibility than public pay policy allows, Scottish Water chief executive Alex Plant said. He told a Scottish Parliamentary committee that employees stood to get a better pay deal of a minimum 8% increase, rather than the 3.5% standard for public sector workers.

However staff voted against the offer made by the company that would be linked to annual pay awards and opted instead to take strike action.

He added that “it’s in no one’s interest to not be resolved”  and added that the “door was always open” to negotiations.

Plant told the parliamentary committee that customer charge increases are interrelated to what staff can be paid as 80% of the organisation’s revenue comes from customers. The publicly owned body does not have the option to seek equity, Plant said, so rising costs of staffing, energy or other needs must be largely covered through bills.

The number of full time employees has risen as the company embarked on its largest ever capital investment programme.

The chief executive joined Scottish in May from Anglian Water where he was strategy and regulation director. The committee quizzed Plant on his salary, which he initially said he could not recall before confirming it is £495,000.

Trade unions, including GMB Scotland and Unison, accused the firm of acting like a “rogue employer” over its proposed restructure and said the company was “running roughshod” over negotiations.

Chief operating officer Peter Farrer said the company was “bitterly disappointed” not to reach a resolution. He added: “We have always wanted to do the right thing for our employees.”

Contingency plans have been laid by Scottish Water to ensure essential services can continue.

In the past week, industrial action by Environment Agency workers was called off at the 11th hour, and talks continue at Thames Water over pay and conditions.