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Hinkley Point C UPDATE

EDF have handed a £99m construction deal which includes design, supply and installation of transmission facilities to Swiss-based firm ABB. The overall project is expected to cost a total of £18bn.

ABB will be responsible for the construction of the substations that will feed 3,200 MW of power to the grid, the installation of six Megavolt transformers, and transmission feeds to transfer power from the plant to the grid.

The deal takes the value of Hinkley contracts let by client EDF so far to £9bn.

Major deals to date include the £2bn civils contract for BYLOR, a joint venture between Bouygues TP and Laing O’Rourke, and the £208m earthworks deal won by a Kier and Bam Nuttall joint venture.

First concrete at the plant was poured in March this year as part of the construction of 7 km of gallery tunnels that carry the plant’s cables and pipes.

However, last week it was revealed that parts of these tunnels had to be demolished and replaced after issues were found with the concrete that had been laid.

Commenting on the infrastructure deal, Hinkley Point C managing director Stuart Crooks said “This major contract marks another significant step forward for the project.

“Hinkley Point C is bringing together companies and expertise from the UK, France and the world. Construction is fully under way and we remain firmly focused on what we need to deliver in the year ahead and beyond.”

From the beginning, Hinkley has been marred in controversy. According to leading protest group Stop Hinkley discharges from the proposed Hinkley Point C nuclear Power station could cause around 200 deaths across the globe over its 60-year lifetime.

The radioactivity of spent fuel from Hinkley Point C would amount to around 80% of the radioactivity of waste already produced in the UK.

Also, with the delivery cost being so high, questions have been raised regarding the true value of Hinkley for Britain. Studies suggest that energy efficient improvements could reduce the energy consumed in UK households each year the equivalent to the output of six nuclear power stations the size of Hinkley Point C.

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Construction workers threaten strike at Hinkley Point as pay offer rejected

Construction workers employed at Hinkley Point have overwhelmingly rejected a pay offer in the longstanding dispute over pay and bonuses on the project.

The unions concerned, Unite and the GMB, will now go ahead with notifying the companies concerned of their intention of holding an industrial action ballot and then progress to ballot members for strike action.

The workers overwhelmingly rejected the proposed pay increase, with over 95 per cent voting against the proposals in a consultative ballot. Members were told that the rejected offer was the best that could be achieved “through negotiations”.

The dispute, which has been ongoing since the spring, concerns the pay of workers engaged on civil engineering contracts at Hinkley Point which is the largest construction project in Europe. There are already over a 1,000 workers employed on these contracts at Hinkley Point.

Negotiations on the pay offer have involved the client EDF and the main contractor BYLOR (the principal contractor Laing O’Rourke and Bouygues TP) as well as the unions.

A ballot for strike action was called off in June after an interim agreement on bonus payments was agreed. The three month agreement was extended into September in the hope that a permanent deal could be made.

One of the principal issues is that the pay rates for workers on civil engineering contracts are significantly below the rates of workers covered by the mechanical and engineering (M&E) contract.

Unite national officer for construction Jerry Swain said “Members have made their views clear; the unions warned the amount of money being offered was not sufficient and this has proved to be the case.

“The client and contractors need to understand that this is a high profile, complex project, built in a tightly controlled secure zone, which is being built in an isolated part of the UK. It cannot and will not be built on the cheap.

“For too long the construction industry has treated workers on civil engineering projects as the poor relations and these attitudes are no longer acceptable. The employers have set the benchmark with the mechanical and engineering agreement they need to come forward with an offer that meets our members’ expectations.

“There is a window between now and the commencement of any industrial action to still resolve this dispute, provided the client and the contractors come back with an improved offer. The unions are fully prepared to return to the negotiating table if an improved offer is put forward.”

Phil Whitehurst, GMB national officer for construction, said “The ballot result is a clear indication that the national officers of both GMB and Unite have to get back round the table with EDF as matter of urgency.

“We will be seeking meetings with EDF as soon as possible to solve this situation on behalf of our members.”

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Hinkley’s construction workers receive bonus to avert strike threat

Constructive discussions between employers at Hinkley Point C and Unite the union have resulted in an interim agreement over the payment of bonuses during the construction of the power station.

All parties have agreed to take part in a collective differences panel that will seek to identify an agreeable long-term settlement of the bonus issue.
As part of the agreement, interim bonus payments will apply until the end of August 2017 and will be linked to safe and collaborative working on site. The total bonus to be paid on this basis is as follows: working supervisor and craft grades £4 an hour, skilled worker grades £3 per hour and general workers £2 an hour.

The interim payments were agreed by representatives of EDF Energy (the client), BYLOR (the Tier 1 contractor comprising Laing O’Rourke and Bouygues TP), the Kier-Bam joint venture (who are undertaking the enabling works) and Unite the union.

As part of the agreement, the previously approved Civil Engineering Sector Agreement (CESA) for the project, which governs pay and conditions, will be fully implemented with effect from 1 June 2017, including the interim bonus arrangements.

The collective differences panel, which will consist of a senior Unite full time official and a senior EDF Energy executive, will thoroughly examine the matter of bonuses.

The panel will seek to identify appropriate permanent bonus arrangements that are agreeable to all parties and is scheduled to deliver its recommendations on productivity/milestones bonus payments by August.

As part of the agreement, no industrial action will be considered while these interim arrangements are in place or until the collective differences procedure has been exhausted.

Nigel Cann, EDF Energy’s Programme and Construction Delivery Director for Hinkley Point C, said “We are proud about the ‘best in class’ nature of the overall package for the Hinkley Point C civil workforce.

“We have created great facilities, an opportunity to develop and a very competitive reward structure.

“We are pleased that these interim arrangements allow constructive dialogue to continue to finalise this important agreement.

“Unite the Union has been a constructive partner in the discussions to date and I look forward to this continuing throughout the construction of the Hinkley Point C power station.”

Unite acting national officer for construction Jerry Swain, said: “I am pleased that following consultation with our stewards and members that we along with the various parties have been able to agree a clear path forward and that the prospect of industrial action, which is always a last resort, can be taken off the agenda in order to allow the ‘Differences Panel’ to deliberate.

“The work undertaken by EDF Energy in ensuring that all parties signed up to the interim agreement has been crucial in providing a breathing space and creating the opportunity for a long-term solution being agreed to finally resolve this matter.”

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Hinkley: Plans to scale back nuclear cooperation with Chinese government emerge

A new plan regarding the future of Hinkley Point C is currently being considered following last month’s delay by Theresa May in approving the £18bn Hinkley Point project.

The government is currently considering a proposal to detach development of Hinkley Point C nuclear reactor from a previous agreement, whereby China is responsible for the delivery of the Essex-based power plant.

China became controversially involved in the project 12 months ago, offering to fund a third of the costs in a deal meant to ease financial pressure on French Energy firm EDF.

However, concerns were raised by Theresa May, who soon called for a project review shortly after becoming Prime Minister.

Putting the project in jeopardy

Experts suggest that any attempts to detract from the agreement whereby China build reactors in Britain risks endangering the whole deal; the primary reason for China’s involvement from their perspective was in order to showcase their nuclear technology in Europe. Otherwise, they would have little interest in being involved in such a project.

This news comes as another knock to overall confidence in the future of Hinkley Point C. Serious doubts plague the proposals regarding the financial and environmental cost of the project – it seems to be losing what little support it had in the first place. Last month, Stop Hinkley Spokesperson Allan Jeffery commented “Now even the financial press says Hinkley Point C has become a laughing stock.

“The cost keeps rising while the cost of renewables is falling rapidly, and the potential to make savings with energy efficiency is huge. We could replace Hinkley much more quickly and cheaply without the safety fears and without producing dangerous waste we don’t know what to do with.”

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