Gas workers begin industrial action after below-inflation pay offer

Despite more than 1,200 GMB members voting to walk out in a strike ballot last month, the union is only calling on members – including those in the West Midlands – to take part in an overtime ban from 12 midnight.

The overtime ban includes stopping working additional hours and members will withdraw from pre-planned overtime to cover gaps in rosters and sick leave.

The industrial action by the gas distribution firm's workers could potentially cause outages at homes and businesses throughout five regions in England – the West Midlands, East Midlands, North West, East Anglia and North London.

Workers resoundingly rejected a below-inflation pay increase of two per cent for 2021 and four per cent from July 22.

With inflation running at nine per cent, the deal amounts to a massive real terms pay cut.

Cadent, which provides gas to 11 million homes and businesses, made an operating profit of £901 million in 2021, while chief executive Steve Fraser was paid £1.4 million in 2020-2021.

Gary Carter, GMB national officer, said: “Despite members voting overwhelmingly for strike action, as a gesture of goodwill members will begin with a short term overtime ban.

"But workers will not hesitate to escalate to strike action if the company doesn’t come back to the table with an improved pay offer.

"It shows how out of step senior management are; they’re just not listening to their employees and the problems facing working people across the country. The cost-of-living crisis is hitting people hard and Cadent makes massive profits from taxpayer-funded work.

“Senior management on big salaries may be insulated from cost-of-living crisis but their employees are not.

“Cadent can afford to give workers a pay rise to help workers make ends meet, they are choosing not too. It’s plain greed.

“GMB members don’t want to take industrial action but have been left with no option. Why should the workforce take a pay cut when Cadent makes huge profits?”

Martin Rimmer, Cadent's chief of people, said: “We are disappointed that an agreement was not reached with the GMB regarding the balanced whole package pay deal we have offered our operational field force.

“We would like to assure our customers that we will continue to provide them with a safe and reliable gas network throughout any action.

“Whilst the GMB has concentrated on asking for a higher pay increase, more than the 6.08 per cent pay increase over two years that we have offered, they have not taken into consideration the whole pay package. Especially the pay increase to our lowest paid colleagues to a minimum of £10 per hour, ensuring that they are paid above the Real Living wage. We also gave £750 lump sum payment to our field force and have made significant changes to the terms and conditions of some contracts based on colleagues’ feedback.

“The pay review and negotiations had been productive over the past 18 months, with the majority – circa two-thirds – of our workforce agreeing the pay increase, and this has been paid to them.

“Despite the rejection of the pay deal, we have implemented the pay increase to our lowest paid to a minimum of £10 per hour, ensuring that they are paid above the Real Living Wage. We believe this is the right thing to do.

“Whilst all of our colleagues will receive a 6.08% pay increase, the impact of the £10 an hour minimum wage means that 37.5 per cent of colleagues on our new contract will receive more than a 13.9 per cent pay increase over the two years from June 2021, if the pay deal is accepted. This is in addition to the £750 lump sum payment made in January 2022 to our field force and staff colleagues.”

Cadent, which has 15,000 miles of underground distribution pipes in the West Midlands from north Staffordshire to Herefordshire in the south, is currently carrying out work to replace old metallic pipes with new plastic ones in the Black Country.

The company is due to open its new West Midlands office at Bowmans Business Park, Planetary Road, Wolverhampton, this year.