Unite has announced that more than 500 workers at the CNH Industrial tractor plant in Basildon will go on strike this month, stating that the company has reneged on a 2022 agreement that would see pay increases calculated by the average rate of inflation over the year.
CNH is offering a 4% increase in 2024, rather than the 7.4% that would be given under the agreement, and for 2025, the company will use the rate of inflation as of December 2024.
Unite adds that CNH reported profits of £2.4 billion in 2023, with profits projected to stay high over the next three years. CEO Scott Wine received a total compensation of £19 million in 2022, reportedly 310 times the pay of an average worker in the group.
Unite general secretary Sharon Graham said: “The pay deal with CNH was agreed in good faith and the company’s extremely healthy finances show that there is absolutely no reason whatsoever for it not to be adhered to.
“CNH is simply trying to rake in even more profits by short-changing its workers. Unite never accepts attacks on our members’ jobs, pay or conditions and the CNH Basildon workforce has their union’s total backing in taking strike action.”
Strike action will take place on the 14, 15, 16, 21, 22, 23, 28, 29 and 30 May, with more strike action to be scheduled if the dispute is not solved. Unite states that the strikes will compromise the supply of New Holland tractors.
Unite regional officer Michelle Cook said: “Paying these workers what was agreed would be water off a duck’s back to CNH. Instead, the company will have to explain to its clients that its penny-pinching greed has caused tractor shortages. Strike action can still be avoided if CNH stops trying to double cross its workers and sticks to the original agreement.”
Responding to the strikes, a CNH spokesperson said: “CNH is in negotiations with the Unite Trade Union representing employees based at the company’s manufacturing site in Basildon, Essex. Following a ballot of its members, the Union has informed the company that the workforce has voted in favour of both Industrial Action Short of Strike Action and for Strike Action. The Union has also informed the company of the dates on which it intends to hold strikes. The company is disappointed that the parties were unable to reach an agreement and that the Unite Union has decided on this course of action.
“We recognize the Union’s decision creates high anxiety among our represented employees in Basildon, as well as our other employees, our customers, and our community. During this period, we foresee no disruption to tractor supply.
“The company remains committed to reaching an agreement, and we are keen to work with the Union to resolve this situation in a timely manner. We will continue to negotiate in good faith and trust that the Union will do the same.”