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Wednesday 08 February 2023 12:17 pm

Drax rules out power cuts as Unite announce nine days of strikes at energy plant

By: Nicholas Earl

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Power generator Drax this morning said that it would hike its interim dividend a tenth after getting back into profit in the first half of the year.
Overall, Baringa has calculated that peak demand for electricity will increase by 4GW over the next four years

Energy giant Drax sought to reassure homes and businesses that electricity supplies would not be affected during nine days of announced industrial action over the coming months.

Drax said its power station would continue to generate base-load renewable power if the strikes went ahead.

A spokesperson said: “In the event of industrial action, Drax has robust plans in place to ensure the power station continues to safely generate renewable electricity for millions of homes and businesses.

“We are deeply disappointed that Unite is planning to go forward with this unnecessary action which will see colleagues lose money instead of securing a significant pay rise. Drax remains open to dialogue with Unite to avoid industrial action.’

This follows claims from Unite, the UK’s second largest union, that the plant risked power cuts if its strike went ahead.

The power plant is responsible for around seven per cent of the UK’s electricity generation when fully operational, making any shortages a challenge for meeting domestic consumption needs.

Unite: Drax are a ‘classic case of greed’

Unite is one of three trade unions representing workers at Drax Power Station – alongside Prospect and GMB.

Drax revealed it put forward an offer which included both a payrise and £2,000 lump sum.

The proposal involved an eight per cent bump-up in pay over 15 months – with 3 months backdated, making it worth 10 per cent.

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Including the lump sum payment, it argues some workers will see a rise in earnings of around 15 per cent.  

This was accepted by Prospect, while GMB has stated it will not be taking industrial action.

However, the deal was rejected by Unite – which has announced an initial nine days of strike action with strikes taking place on 20 and 27 February, then 6, 13, 20, 27 March and 4, 10 and 17 April.

It argues the deal represents a real terms pay cut for its 180-plus workers, with the current inflation rates on the retail price index standing at 13.4 per cent.

Unite general secretary Sharon Graham said: “This is a classic case of greed by a company which is already generating eye-watering profits. Drax is cynically seeking to boost its bonanza profits further by forcing workers to take a real terms pay cut.”

The union noted that the real terms pay cut is coming at a time when Drax is making huge profits due to the increase in the cost of electricity – estimated at £680m for 2022.

City A.M. understands pensionable pay (excluding bonuses and overtime payments) for Drax within the Unite collective bargaining unit is around £57,000 – which is around three-quarters more than the UK national average full-time earnings of £33,280.  

Pay at the power station has risen by 51.6 per cent since 2011 (including 2023 offer) compared to the inflation growth over the same period of 38.2 per cent.  

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