OIL refinery workers will vote on strike action over pay – in a move company bosses say will jeopardise jobs and take millions out of the North-East economy.

Unions are demanding better wages for Hertel UK staff, who provide repair and maintenance at ConocoPhillips’ site, warning staff are prepared to down tools in protest.

However, Hertel says the action puts more than 50 positions are at risk at the refinery, in Seal Sands, near Middlesbrough.

It added the unions’ stance has also forced the cancellation of a planned maintenance operation at ConocoPhillips next month, which it claims has taken millions of out Teesside’s economy.

Unite, alongside fellow union, GMB, is pushing for an improved wage structure, saying Hertel’s zero per cent offer is not good enough.

It wants a deal, linked to National Agreement for the Engineering Construction Industry rates, which would see salaries rise annually over the next three years by up to 2.5 per cent.

Hertel has long said the pay demands are unrealistic, citing the oil and gas sector’s woes for its decision.

But Steve Cason, Unite regional officer, said the union, which has more than 60 members employed by Hertel at Seal Sands, will not back down.

He said: “Strike action is always a measure of last resort; all our members want is a fair pay deal and one that recognises the work they do.

“They have already signalled they are prepared to take action to get pay justice and will not be swayed by redundancy threats.

“The clock is ticking for Hertel and ConocoPhillips, with a real threat of a walk-out unless there is some movement to address members’ concerns.

“We held a constructive meeting with Hertel’s management team but, despite some progress, it was made clear ConocoPhillips would not fund a pay increase.

“The zero per cent pay offer is not something our members are prepared to accept, but there is still time to bring this dispute to an end.”

Hertel previously told The Northern Echo it was at the mercy of the lower oil price, adding the majority of staff at Seal Sands have already accepted a pay freeze to help it overcome its difficulties.

David Massey, Hertel UK’s HR director, also said rates of pay for most contractors are on par with, or higher than, many in the area, reiterating the uncertainty has caused the postponement of maintenance work.

He added: “During these difficult times for the oil and gas sector, contractors, workers and employees are trying to protect future investment and jobs.

“At the same time, we have a minority of Unite members who are seemingly intent on pursuing a pay increase, which is simply not affordable in the current circumstances.

“Unite issued a press release in February, asking for Government support to protect the oil and gas sector.

“Yet in Teesside, the same trade union is looking to instigate industrial action seemingly oblivious to the extreme financial pressures the industry faces.

“The implications of this are likely to be a further reduction of investment and the possibility of further job losses.

“This is something we don’t want to see happen on Teesside.”

Hertel UK was founded in a caravan in June 1975, when John Burt, a well-known figure across the region’s process industry, launched the business as a subsidiary of the Dutch-based Hertel Group.

Known for supporting the oil and gas, energy and nuclear decommissioning sectors, it now runs its head office from Middlesbrough’s Middlehaven site.