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Balfour Beatty withdraws contract after court bid is lost
by Stephen Cape, The JournalFeb 18 2012
A LEADING construction company with bases in the North East has withdrawn a controversial new contract after it lost an attempt in the High Court to block strike action.
A legal challenge by Balfour Beatty Engineering Services was thrown out after the Unite union secured a ballot for industrial action by a 2-1 vote.
Earlier this year hundreds of qualified electricians, plumbers and construction workers in the North East, and many more across in the UK, were given a deadline to sign the new deal or face possible dismissal.
Unite claimed the proposal could have resulted in a 35% cut in wages with the risk of some workers losing their jobs.
This was denied by the construction company and the Heating and Ventilating Contractors’ Association, which had hammered out the controversial deal for the industry.
The union had targeted Balfour Beatty and six other major construction businesses which were planning to bring in the sweeping changes.
The other firms include Shepherd Engineering, Matthew Hall and NG Bailey Building Services. It is understood that these companies are now considering their position.
Balfour Beatty was one of seven construction firms that unions accused of seeking to tear up the long-standing agreements and impose new semi- skilled grades.
New contracts would have led to pay cuts of up to 30% and poorer terms and conditions for key construction staff, said Unite.
General secretary Len McCluskey said: “Balfour Beatty’s decision to withdraw these contracts and the threat of dismissal and to enter high-level talks is a welcome move.
“Not only is it a victory for common sense but it is testament to the resolve of hard-working construction workers who have stood shoulder to shoulder to defend their livelihoods.
“Continuing to impose these contracts would have resulted in a race to the bottom that would have been bad for the industry.
“We expect the other six construction firms to see sense and follow Balfour Beatty’s lead in talking seriously about securing livelihoods and bringing stability to the industry.”
Ray Smith, secretary of the Newcastle central branch of Unite, said: “This is fantastic news. Balfour Beatty is the biggest company and I think the others will cave in.
“Members I have been in touch with have been really worried about this. Some of them have not had a pay rise for three years and yet energy costs, food and other expenses have all gone up.”
In a statement, Balfour Beatty said: “Both parties are committed to high-level talks within an agreed timeline with the aim of creating new proposals and ensuring agreed terms are honoured.”
by Stephen Cape, The JournalFeb 18 2012
A LEADING construction company with bases in the North East has withdrawn a controversial new contract after it lost an attempt in the High Court to block strike action.
A legal challenge by Balfour Beatty Engineering Services was thrown out after the Unite union secured a ballot for industrial action by a 2-1 vote.
Earlier this year hundreds of qualified electricians, plumbers and construction workers in the North East, and many more across in the UK, were given a deadline to sign the new deal or face possible dismissal.
Unite claimed the proposal could have resulted in a 35% cut in wages with the risk of some workers losing their jobs.
This was denied by the construction company and the Heating and Ventilating Contractors’ Association, which had hammered out the controversial deal for the industry.
The union had targeted Balfour Beatty and six other major construction businesses which were planning to bring in the sweeping changes.
The other firms include Shepherd Engineering, Matthew Hall and NG Bailey Building Services. It is understood that these companies are now considering their position.
Balfour Beatty was one of seven construction firms that unions accused of seeking to tear up the long-standing agreements and impose new semi- skilled grades.
New contracts would have led to pay cuts of up to 30% and poorer terms and conditions for key construction staff, said Unite.
General secretary Len McCluskey said: “Balfour Beatty’s decision to withdraw these contracts and the threat of dismissal and to enter high-level talks is a welcome move.
“Not only is it a victory for common sense but it is testament to the resolve of hard-working construction workers who have stood shoulder to shoulder to defend their livelihoods.
“Continuing to impose these contracts would have resulted in a race to the bottom that would have been bad for the industry.
“We expect the other six construction firms to see sense and follow Balfour Beatty’s lead in talking seriously about securing livelihoods and bringing stability to the industry.”
Ray Smith, secretary of the Newcastle central branch of Unite, said: “This is fantastic news. Balfour Beatty is the biggest company and I think the others will cave in.
“Members I have been in touch with have been really worried about this. Some of them have not had a pay rise for three years and yet energy costs, food and other expenses have all gone up.”
In a statement, Balfour Beatty said: “Both parties are committed to high-level talks within an agreed timeline with the aim of creating new proposals and ensuring agreed terms are honoured.”
