Workers employed by Drax Hydro, who operate power stations across Scotland, are to be balloted for strike action in a dispute over pay.
Around 50 Unite union members will take part in the ballot covering Stonebyre (Lanark), Cruachan (Loch Awe) and Glenlee (Castle Douglas) power stations.
The ballot, which opens on 1 February and closes on 22 February, follows the rejection of an 8% pay rise - significantly below the current rate of inflation - 13.4% (RPI).
Sharon Graham, Unite general secretary, said: “Drax’s parent group is awash with tens of millions in profit, yet Drax Hydro workers have been offered what amounts to a significant real terms wage cut, this is totally unacceptable.
“We will fully support our members in their fight for better jobs, pay and conditions.“
If the ballot is successful then strike action could take place in early March.
The workers involved include engineers, plant controllers, as well as mechanical and electrical craft workers. A consultative ballot held in December indicated that strike action was supported by 84.9% of Unite members.
Drax Hydro posted its latest accounts in July, indicating the company made profits totalling £2.3m for 2021. The Drax Group posted profits of £78.7m for the year ending in December 2021.
This month, energy regulator Ofgem announced that following an investigation Drax Pumped Storage - a subsidiary of the parent group - paid a fine of £6.12m for breaching the Generation Licence by submitting excessively expensive bids to turn down its generation in the balancing mechanism.
As a result of Ofgem’s compliance work, the company admitted to having breached its Generation Licence, specifically the Transmission Constraint Licence Condition. This prohibits generators from being paid, or seeking to be paid, an excessive amount during times of transmission system constraint.
Elaine Dougall, Unite regional co-ordinating officer, warned that the strike could directly hit energy supplies to Scottish businesses.
“Drax Hydro must explain why they are prepared to jeopardise the precarious position of many Scottish businesses rather than working to resolve this dispute.“
A Drax spokesperson responded: “We have put forward a fair and competitive pay settlement which rewards our valued colleagues and is significantly above the national average.
“We will continue to work with the unions to find a resolution which avoids strike action at our Scottish hydro power stations and ensures the long-term sustainability and success of the business.
“We have plans in place to ensure that there will be no impact on electricity supplies should the action go ahead in Scotland.”
The company noted that the 8% pay offer was over 15 months - with three months backdated, making it effectively worth 10%.
As part of the negotiations, Drax also extended an offer to include benefits including medical and income protection, but this has not been tabled back to members by negotiating unions.
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