Rig builders get 4.2% rise

After three months of negotiations and the threat of imminent strike action, workers at a oil-and gas-rig manufacturer have secured a 4.2% pay increase for 2007.

Managers at the Dutch company Heerema had initially offered a two-year deal worth 3.5% in each year, but this was rejected by negotiators from the GMB general union and the manufacturing union Amicus. When talks failed to produce any movement by the beginning of this month, a ballot of pipe-fitters, welders and platers at the firm's Hartlepool site produced an overwhelming vote in favour of continuous strike action.

The improved deal, which is backdated to the beginning of January and will last just one year, was reached the night before the strike was to begin.

It also includes improved overtime rates, which have now been restored to the level they stood at seven years ago.

"This is a good deal for a very valuable, highly skilled workforce, and is no less than they deserve," said GMB regional organiser Jimmy Skivington, who led the union side in the negotiations.

Explaining that the deal had been accepted following "quite a lengthy meeting with our members", Skivington added: "We are very happy with the settlement, and are also very happy we have managed to avoid strike action."