BOSSES behind a £250m Teesside energy plant are exploiting workers through deplorable pay practices, it has been claimed.

Unions have accused contractors overseeing the Sita Sembcorp UK waste-to-energy plant, at Wilton, near Redcar, of treating migrant workers with contempt, saying staff are receiving wages nowhere near national agreements.

The factory’s construction has been dogged by protests from unions, who have held demonstrations amid accusations of wage undercutting, a rejection of local workers in favour of overseas personnel, and an overlooking of safety issues.

Sita Sembcorp UK has always strenuously denied the allegations, and told The Northern Echo it does not agree with the latest claims about the factory build, which is being managed by joint venture company CNIM Clugston Wilton.

However, it did confirm it is carrying out an internal investigation, and says it will take strong action against CNIM Clugston if needed.

According to the GMB, Unite and Ucatt unions, the pay of many migrant workers is less than half national agreements.

The unions say a site visit showed migrant staff, already earning just above the minimum wage, were having to pay employee and employer national insurance contributions because they were employed through umbrella companies.

Michael Blench, GMB regional officer, said: “I was appalled to find the treatment of the migrant labour.

“Mechanical fitters are paid nine to ten euros, all differently, and the highest paid were a couple of welders, who were paid 13 euros an hour.

“Sita are treating these workers deplorably and not paying anywhere near our national rates.

“As usual, the small amount of local labour on site has been paid off and more migrant labour is being brought in, with little attention paid to their safety or welfare.

“Sita are a prime example of a company abusing local communities making excessive extortionate profit on the back of their employees’ misery.”

Steve Cason, Unite regional officer, added: “A coach and horses is being ridden through national agreements established to maintain standards and ensure workers are paid fair."

Sita Sembcorp UK’s plant is due to next year, and is expected to convert more than 400,000 tonnes of household waste from Merseyside into electricity and steam.

The factory will create about 50 permanent jobs when work starts.

However, its build has been littered with union unrest, which the company has always denied.

Reacting to the latest claims, a spokesman said: “Sita Sembcorp UK UK facilitated a formal access visit by trade union representatives to the Wilton site.

"This union visit was the second such formal access Unite, GMB and Ucatt have had to workers on this project.

"The individual workers employed on site are not employees of Sita Sembcorp UK, Sita or Sembcorp, but are employed by CNIM Clugston and their subcontractors.

"Of a workforce of approximately 750 people on site, employed by more than 30 different sub-contractors working for CNIM Clugston, we understand a dozen or so individuals chose to meet with union representatives.

"Following these meetings, the unions relayed a number of issues and asked Sita Sembcorp UK to investigate with CNIM Clugston.

"Conversely, following the meetings, the unions agreed to drop a number of previous allegations, which had been shown to be baseless.

"Sita Sembcorp UK has subsequently written to CNIM Clugston demanding a detailed response to these issues and, more importantly, evidence to either substantiate or refute each individual claim.

"A time frame of seven working days to respond was committed to with the unions, in order to allow both Sita Sembcorp UK and CNIM Clugston to investigate these matters properly.

"That time frame has not yet lapsed.

"Sita Sembcorp UK does not agree that workers employed on site are exploited or being treated deplorably and CNIM Clugston has consistently led us to believe all workers on site are paid a rate equivalent to the unions’ respective voluntary working rate agreements, which are at the centre of this debate.

"If any of the allegations are proven to be true, Sita Sembcorp UK will take robust action against CNIM Clugston to ensure any anomalies or problems are immediately rectified.

"Throughout this long-running dispute, workers employed on site have not been involved in union-supported protest action, nor have they complained to Sita Sembcorp UK or CNIM Clugston about their pay or terms of employment despite every opportunity to do so and, indeed, pressure to do so by the unions and activists.

"We do, however, acknowledge the allegations made by the trade unions as a result of meeting with some of the workforce and we have launched a full and proper investigation into these claims. 

"From prior investigations, we are however, clear on our position in respect of the legality of all employment practices on site and that, while umbrella contracts are used in some instances, these comply with all HMRC guidance and applicable UK laws.

"Any suggestion that workers welfare or safety on site is compromised, or is in any way linked to the union’s complaints about their working rate agreement, is completely disingenuous. 

"Sita Sembcorp UK is placing substantial pressure on CNIM Clugston to respond to these allegations and we will respond to the unions, and the wider project stakeholders, in due course and with a factual basis.”