UK Unions Take Industrial Action at Rhodia

Two British unions have promised more industrial actions against French-based chemical producer Rhodia unless the firm drops its proposal to exclude new workers from a pension plan. Some 625 workers at two UK Rhodia plants - members of ICEM affiliates GMB and Amicus - struck late 17 July and 18 July at Oldbury, West Midlands, and Widnes, Chesire.

GMB General Secretary Kevin Curran (fourth from left) joined GMB and Amicus members on picket lines at Widnes on 18 July in their one-day industrial action against Rhodia. In foreground, at right, with sign is GMB Convenor Chris Wright.

The two 24-hour walkouts are the first time British workers have struck to defend their pensions. Talks broke off 1 July when the specialty chemicals maker refused to address its pension curtailments on new employees. The company then failed to respond 11 July to a letter from the unions inviting the firm back to negotiations. GMB and Amicus members then immediately voted to take industrial action at the two plants.

"GMB members know that closing the scheme to new members puts the long term viability of the scheme at risk," stated GMB General Secretary Kevin Curran. "Their security in retirement is being put in jeopardy by the decisions being made by the company now.

"Rhodia have refused to have a proper debate on our members' pensions and have left us with no option but to strike so their united voice can be heard."

Amicus Joint General Secretary Derek Simpson added, "This will be the first in a wave of strike actions that will gather pace as more and more workers realize that they face an old age of poverty. The workers at Rhodia are not just fighting for the future of the scheme, it is for the future of their children and their communities."

By 21 July, the unions were again attempting to re-start talks with Rhodia to address the pension issue. Rhodia has been alerted that another 24-hour work stoppage at the Widnes plant is set for 15 August, while the Oldbury plant will be struck for a full day on 5 September. And intermittent, shift-long actions will occur every few days until then at both sites to protest the pension cuts.

Companies have used dismal stock market performances by funds holding pension assets as an excuse to attack the sanctity of workers' pensions. And Rhodia's decision to restrict new workers from the pension plan and push them instead into a money-purchase scheme comes after years of the firm underfunding the pension plan. Rhodia has dropped its contributions from 18% to 14% over the past three years.

Roger Lyons, Joint General Secretary of Amicus, said, "The willingness to take action by Rhodia employees is the first rumblings of the groundswell of public opinion which will drown us all in old age unless we deal with the pension crises today."

GMB's Curran added, "Our members recognise that closing the scheme to new workers is just the first step to eventually stripping current workers of their hard-earned pensions. Employers need to get the clear message that they cannot back off from their duty."

GMB represents process workers at the two plants in which industrial action occurred 17-18 July, while Amicus represents engineering staff. The Oldbury plant, employing 500, makes flame-retardants, water treatment products, food ingredients and various industrial chemicals. The Widnes plans employs 125 union members and manufactures food ingredients and industrial phosphate chemicals.

The company was created in 1998 when Rhone-Poulenc S.A. spun off two major divisions, Chemicals & Fibers and Polymers, to create publicly-traded Rhodia.