10:55 am, August 22, 2022
The new car industry could be facing further backlogs after dockers at the Port of Felixstowe walked out on strike.
The industrial action, which is expected to last until August 29, has seen around 1,900 Unite members refuse to work due to a pay dispute.
It is the first strike at the port since 1989 and is expected to have a huge impact on Britain’s motor industry.
The likes of Rolls-Royce and Jaguar Land Rover depend on the port to bring in parts and export cars around the world.
It’s feared the eight-day strike action will take several months to recover from at a time when supply chains are already being stretched to breaking point.
The Times reports that Maersk, the world’s largest shipping line, has already started cancelling calls into the Felixstowe and is instead diverting ships to Antwerp, Le Havre and London Gateway on the Thames.
The strike is taking place after Unite rejected a pay rise of seven per cent, as retail prices inflation currently stands at 12 per cent.
Unite general secretary Sharon Graham said: ‘Felixstowe docks is enormously profitable. The latest figures show that in 2020 it made £61m in profits.
‘Its parent company, CK Hutchison Holding Ltd, is so wealthy that, in the same year, it handed out £99m to its shareholders, so they can give Felixstowe workers a decent pay rise.
‘It’s clear both companies have prioritised delivering multi-million-pound profits and dividends rather than paying their workers a decent wage.
‘Unite is entirely focused on enhancing its members’ jobs, pay and conditions, and it will be giving the workers at Felixstowe its complete support until this dispute is resolved and a decent pay increase is secured.’
The Port of Felixstowe said in a statement: ‘The company is disappointed that Unite has not taken up our offer to call off the strike and come to the table for constructive discussions to find a resolution.
‘We recognise these are difficult times but, in a slowing economy, we believe that the company’s offer, worth over eight per cent on average in the current year and closer to 10 per cent for lower-paid workers, is fair.
‘Unite has failed our employees by not consulting with them on the offer and, as a result, they have been put in a position where they will lose pay by going on strike.
‘The port regrets the impact this action will have on UK supply chains. We are grateful for the support we have had from our customers and are working with them to mitigate disruption.
‘The port provides secure and well-paid employment and there will be no winners from this unnecessary industrial action.’
Jaguar Land Rover declined to comment when asked for a response by Car Dealer. BMW Group, owner of Rolls-Royce, did not respond.
