BOSSES behind a £250m energy plant have sacked sub-contractors as a wage wrangle takes a new twist.

CNIM Clugston Wilton, which is overseeing the build of the Sita Sembcorp UK plant, in Wilton, near Redcar, has ripped up two firms’ contracts.

The move follows union allegations of wage undercutting at the site.

Sita Sembcorp UK has always rejected the claims and says principal contractor CNIM has carried out an investigation into more than 60 sub-contractors’ pay rates.

Officials say the move found the vast majority are offering salaries above national agreements.

However, two firms have seen their agreements torn up after failing to give any evidence, which CNIM says is proof of its commitment to providing a fair workplace.

The waste-to-energy plant’s construction has been dogged by union dissention, with hundreds of protesters demonstrating near the factory over pay, alleged favouring of foreign workers, poor treatment of migrant staff and a disregard for safety.

Sita Sembcorp UK has consistently denied the accusations, and always said it doesn’t agree with any claims about the factory build.

Referring to its pay investigation, a SITA Sembcorp UK spokesman said: “We have received a number of allegations from union members, all of which have been investigated thoroughly and the vast majority of which are baseless.

“There is no question the site is being run to extremely high standards, with excellent health and safety practices, and all sub-contractors are paying rates in line with English law.

“Furthermore, we have not sought, nor obtained any financial benefit from the use of overseas contractors at the expense of domestic UK contractors in the construction of this facility.

“We expect all workers to be paid in line with the National Agreement for the Engineering and Construction Industry or the Construction Industry Joint Council - Working Rule Agreement, wherever they are from.

“Our position is clear and has been the same throughout discussions with union representatives.

“If any sub-contractors are found to be paying less than the appropriate rates of pay, no matter how small the differential, then we will apply pressure to ensure this is rectified immediately.

“We have the assurances of CNIM that any sub-contractor that fails to comply will be dismissed from the site.”

The plant is due to open next year, and is expected to convert more than 400,000 tonnes of household waste from Merseyside into electricity and steam.

It will create about 50 permanent jobs when work starts.

However, unions, including Unite, GMB and Ucatt, say they will continue applying pressure on the companies behind the development, with a protest expected to take place outside Sita’s base in Haverton Hill, near Billingham, today (Wednesday, September 23), and another set for Wilton on Friday.