GMB members working on the company’s nuclear submarine programme have begun industrial action.
The action started on Monday 29 April, and will run for one month.
The action comes after 90 per cent of GMB members at the company supported action if company bosses failed to present a pay rise acceptable to union members.
Known as ‘work to rule’, the industrial action will see GMB members applying strict limits to working outside of pre-agreed processes.
Rolls-Royce is a world leader in the field of submarine technology, as well as being the supplier to Britain’s domestic nuclear submarine fleet.
In agreement with the company, any industrial action will not jeopardise the UK’s continuous at sea nuclear deterrent, safety of submarines or operational submarines at sea.
Mick Coppin, GMB Regional Organiser, said:
“Our members have begun industrial action today after weeks of company bosses refusing to bring a fair pay settlement to the table. These are highly skilled workers at the cutting edge of British manufacturing.
“In a year when company profits have skyrocketed, all workers are asking for is a fair days pay. It’s time for company bosses to urgently get back around the table and fix this; our members deserve that.”
The offer is a 10% payrise and 6 days additional holiday. Accepted by everyone but the GMB. Some members have even quit GMB. Why isn’t that mentioned?
There has to be a better way of solving such disputes in general, other than by strike action, but I can’t think of an alternative that might work. In a classic free enterprise economy with many buyers and many sellers, skilled workers could move to another company that offered better wages, but that text book model is long dead(even if it ever really existed). My only concern is that the affect on such sensitive projects might damage the defence of the realm, despite the assurances given. If they are working to rule it will slow the completion date, sour management-worker relations, and harm the image of the company.
Lose-lose!
Best thing for the company and workers is to enter into a profit share agreement. So when the company does well the worker benefits but Unions tend to see one off profits as a reason to get long term pay rises, which is fundamentally flawed thinking as profits aren’t permenant and need the company to stay competitive and continue to win business that provides profit. In Germany Union sit on board and review the entire financial position of the company, they better versed in how the overall business runs and the long term impact of their demands. We prefer a far more confrontational approach, to some degree we never got over the class war of the last century, it still holds us back.
Yes the Government won’t be increasing the amount payable to the contractors (and if they do only by a small amount). Not sure that any company will be looking towards the German model as helpful most see German subsidiaries as a nightware as a working environment. Some form of profit sharing might seem sensible.
Thanks for your reply Expat. A difficult issue-Makes me think that perhaps the world would be better off if nations were run by clones of Lee Kuan Yew!
Like your thinking I’d be intrigued about your opinion of my reply to DB.
As for a profit share agreement I don’t know a single RR employee who isn’t a shareholder in their own right. Many years ago the focal point at break time was page 3 of the sun now it’s “anyone checked the FT ?”. In fact I’d say that bonuses should be paid in shares.
The best way of solving the dispute is an impartial intermediary binding on both sides. This should be the case for all workers who are in jobs which are essentially essential. Doctor, Nurses, Railway workers, etc. It needs to be done in such a way as to avoid fueling inflation & must be effectively affordable.
The best way to solve the never ending issues with all public service employees is to get rid of every single independent pay body.
Abolish all the separate Unions and have one body to represent all public workers, and I’d include the Armed Forces as well.
Instead everyone is put on one Universal Pay Scale that is related as a % to the National Average Wage. Depending on how valuable or skilled the job depends where you are on the scale.
That also stops the incessant “Well the Junior Drs got 6% so I want the same” everyone gets the same annual % rise or not depending on how everyone is doing.
And that would include the Services, Civil Servants, MPs, Ministers and the Civil list.
Yes. Linking it strongly to wages in the sector is probably a decent idea. You are almost suggesting this could be done using some form of formula. You would have allow a mechanism to allow for higher pay to reward greater productivity. Abolishing unions might get a mixed reaction however I can certainly see that negotiating pay should come out of the mix.
You also need a mechanism to change the formula over time. Some jobs no longer exist (when is the last time you saw a lift operator). Not all jobs stay the same. Some evolve over time, some stay relatively static, some disappear, some appear & some reappear (some disappear because there was not enough work at the time, but time moves on & nothing lasts forever). Some jobs that were traditionally low paid, no-one now wants to do. If it was simple, it would have already been done.
I think lift operators are called plastic surgeons nowadays.😂
I suspect that the problem is political. The obvious place to start would be jobs (normally public sector) where it is difficult for employees to strike due to the essential nature of their work. Doctors, Nurses, Train Drivers, Soldiers, Police etc.
Many of those workers are currently covered by trade unions Which may not be happy if you effectively took away a key reason for their existance.
Yes of course you do, it would need to be flexible and take into account experience, change in economic circumstances and upskilling. But one big body in charge.
I should have added that there are literally 100’s of independent pay bodies, each of which has to be funded. It’s actually an industry of QUANGOS funded by poor industrial relations. 🤔
No doubt there is a pay body to sort out the pay of pay body personnel. Sometimes bureaucracy is self defeating.
Except 1 the MPs.
No-one at RR Nuclear (or RR&A as it used to be)is on strike, in fact we have never had one.
Yep the classic model is dead, but right now really highly skilled workers are in massive demand. They just don’t exist and taking on contractors isn’t an option in some parts of the Industry (security), so it will get settled.
It’s interesting here in Derby because we have 2 RR’s, the Aero side (which is where nearly everyone starts) and RR on Raynesway.
Get it wrong on Aero and 200/300 people die, get it wrong on Raynesway and it’s a totally different level of risk.
So it’s a headline story but not for long as no one is daft enough to bugger up the share price. 🥴
Many thanks for the ‘from the horses’ mouth info Rodney. The skills shortage is a world wide phenomenon. Here in SA we have millions unemployed but the only people that can(figuratively) hang a door properly are a few old artisans way past retirement age.
You just made my day, yep I’m an apprentice served ex engineer and I know how a lot of things work. But one of my Hobbies is Carpentry and I just love working with hand tools and a living pliable material.
And yes I know how to hang a door 🤣
Whats the going rate in SA ?
Hey Rodney-to answer your question, one needs to go back in history a little to the decades prior to the damage inflicted on Industry and infrastructure in SA under the malignant rule of Jacob Zuma.
South Africa built the first Nuclear reactor on the African continent commencing operations in the early 1980’s. We also had a first world infrastructure which was by far the best on the continent. Our Defence Industry which along with Israel and a few others including Taiwan and Zimbabwe/Rhodesia,was a member of the” Necessity is the Mother of Invention ” Club due to sanctions and more to the point an absolute need to be as self sufficient as possible in that department. We produced some of the world’s finest artillery, armoured vehicles, front line aircraft based on the Mirage family, small arms and other weaponry. We had two good Presidents after the 1994 election-Mandela and Mbeki. Then came Jacob Zuma who basically presided over the looting and destruction of much of what was bequeathed to the ANC when they came to power. This is not the forum to discuss in depth, but to answer your question, the going rate in terms of purchasing power here for someone like you might give you a very good living in the Cape Province BUT ( and this is the proverbial big BUT) you would be unwise to come here at this time when our future looks decidedly uncertain. I know you posed that question in jest as you seem to be in a great spot at RR but the answer is worth knowing.
All very sad.
Regards
At Raynesway we have had various forms of industrial action over the years including work to rule.
Geoff Not one single person at RR on Raynesway is on strike. It’s a work to rule, so just be professional, turn up do the job, work your hours and then go home.
No overtime !
It’s a disagreement about pay in an industry that is massively having to ramp up in capacity after decades of under investment and a generation of engineers who were just not recruited.
What you don’t know is that every single one of those workers know precisely the implications of what happens if their job isn’t done correctly. Nearly every single one lives locally and knows exactly what could happen if things go wrong.
As for the classic free market economy, well I’m sorry but when you are dealing with HEU you really do not want a transient mobile workforce.
You do want the person who has spent 10 years in the Aerospace division, has been handpicked to move over into the Nuclear division and their family lives in the locality.
And if that person gets slightly naffed off when they have been offered a below inflation pay rise when the directors got a massive bonus, don’t be too surprised when they get annoyed.
Wow-spoken with passion and a case well presented Rodney!
Rodders ABC are you on the naughty step?
Nope ! I have just been sitting back and reading the comments before saying anything.
It’s actually nice not to see anyone screaming to hang folks from the Yard Arm for exercising their democratic rights. I do think that way too many people forget the reasons this weird, odd little island of ours is worth defending.
Democracy, tolerance and a sense of fair play (except for the French).
Firstly no one is on strike, they are working to rule which just means “I’m doing the job I’m paid to do, the way I’m supposed to and not one jot more”.
I was a Union member from my 1st working day to my last and was a Union rep for several years, I never got into the Political side of things (not interested) but like too think I helped smooth things over”.
I actually really enjoyed Ex Pats comments because our traditional way of doing things is just out of date and way too confrontational. We do need better ways to do things.
Not sure the German system would work here but share saves do focus one’s mind. I know just how many folks round here keep an eye on the share price (including me). Feeling that you are valued, listened to and being al, in it together is the vital ingredient to good industrial relations.
I’ve said this before but I’ll repeat it.
Down the Rd is Toyota and in 2008 we all had the financial crisis. Toyota are a 100% closed shop with only 1 Union and every single person wears exactly the same overalls, eats in the same canteen and use the same facilities (no named car park spots).
Toyota were in the same mess as all car manufacturers too many cars and not enough customers so redundancies were proposed.
The Japanese were very surprised when the Union came back with their counter proposal. Everyone takes a 20% pay cut, reduced hours, no overtime, Night shift is cancelled and no redundancies. Toyota worked out it was just about fiscal neutral and agreed to it, all the Japanese managers who were on Japanese T’s n C’s voluntarily took the cuts as well.
When things improved Toyota hit the ground running, a stable workforce meant a very rapid ramp back up to 100% capacity and all cuts were reversed.
Over the next 2 years Toyota voluntarily paid out annual bonuses which paid everyone back what they had lost and a bit more.
RR is a massive firm in Derby and some families are now 5th generation workers and overall Ind relations aren’t too bad. This is somewhat helped by the memories of 1971 when it went bust.
As for the idea of a bonus based on profits, I’m not sure that’s a good idea as it restricts investment. I’d rather it was related to Share Save as it ensures a long term benefit and commitment.
Now Jonathan does post some great content, Gunbuster does mental detail, Airborne just goes feet first, Daniele has OCD on spreadsheets for all the Services he’s never served in, HOWEVER,
This has to be ranked #1 for the 2024 post of the year.
Balanced, thoughtful, incisive, detailed.
George, time to create a post of the year, please.
I’m blushing, thank you ! 🍻
Good on you mate.
Thank you. And I just hope you have a nice quiet weekend, my wife loves BH as she gets to schedule engineering works.
🚂😉
Not this weekend I’m afraid. That was last weekend, no trains, lovely!
Toyota story is very interesting. It shows what happens when the management work constructively with the workers. The fact that the initial ideas came from the workers shows they know the business.
We really do go OTT to knock our own country but when we get it right very little is said. Good Industrial relations are an absolute must in any sustainable industry, it isn’t rocket Science it just needs both sides to understand that they both have the same ultimate goal.