Felixstowe, the UK’s largest container port, is heading for a crippling 8-day strike in two weeks after mediation talks with the unions representing port workers appeared to reach an impasse on Monday, August 8. After talks failed to make progress last week, the union Unite representing 1,900 staff and hourly employees at the port predicted “huge disruptions” when the strike begins on August 21.
“We are disappointed and regret that despite our best efforts we have still been unable to reach an agreement with the hourly branch of Unite,” the port of Felixstowe said in its statement after Monday’s talks ended. “The hourly branch of Unite has again rejected the port's improved position and refused to put it to its members.”
The union has repeatedly called for the port to make “a reasonable offer,” citing the current 11.9 percent retail inflation in the UK. Further, they cited that members while keeping the port functioning during the pandemic only received a 1.4 percent wage increase in 2021. They highlight that workers’ pay is not keeping up while Felixstowe and its parent company CK Hutchison Holding “are both massively profitable” while also paying large shareholder dividends.
Unite national officer Robert Morton responded in the British media saying, “Unite's door remains open for further talks but strike action will go ahead unless the company tables an offer that our members can accept."
During Monday’s negotiations, Felixstowe added a £500 (approximately US$600) cash payment to its proposal to the union members. The port said it would be in addition to its proposed 7 percent wage increase for all employees.
The staff branch of Unite and the Police Federation of Felixstowe Dock and Railway Company agreed to put a similar offer to their members. The representatives for the hourly employees however rejected the proposal ending the talks and clearing the way for the strike.
“We urge them to consult their members on the latest offer as soon as possible. There will be no winners from a strike which will only result in their members losing money they would otherwise have earned,” concluded the port spokesperson.
Felixstowe handles roughly half of all the imports into the UK with an annual volume of more than four million TEU. It is the primary deep-water port for the UK included on the routes from Asia operated by most of the major container lines. Reports indicate that the shipping companies are planning to blank stops in the UK from their route during the strike or possibly look to transship containers from other European ports on smaller vessels. While the strike is scheduled to last only eight days, union officials have predicted that “it will generate massive shockwaves throughout the UK’s supply chain.”
Port officials are reporting that the union has rejected the company’s offer to meet again.
