Siemens Group profits at €8.5 billion while wages have dropped in real terms by 12%

Around 300 Siemens Gamesa wind turbine workers in Hull are being balloted for strike action over pay, Unite, the UK’s leading union, said today (Friday).

The workers, who construct 108 metre long wind turbine blades by hand, are angry at a 4.5 per cent pay offer plus an opaque incentive scheme.

Since 2018, wages at the factory on the banks of the Humber estuary have dropped by 11.9 per cent in real terms. This is due to below RPI inflation pay rises and the suppression of wages through a performance related bonus scheme.

Unite general secretary Sharon Graham said:
“Siemens is a colossally profitable company, yet wages at its Hull factory have fallen in real terms year on year.

“The company is using the bonus scheme to suppress wages and the workforce have had enough. Unite does not accept attacks on our members’ jobs, pay and conditions and Siemens’ Hull workers have their union’s total backing.”   

Siemens Gamesa Renewable Energy (SGRE), which owns the factory, made £394 million in profits over the last five years and paid out two dividends worth £226 million during the same period. SGRE’s revenue is expected to double in 2024 to £1.5 billion, with pre-tax profits on course to hit £100 million for the year.

The company is part of the Humber Freeport Zone and benefits from a range of economic incentives as normal tax and customs rules do not apply. It is ultimately owned by Siemens Energy AG which made pre-tax profits of more than €8.5 billion in 2023.

The workers are being balloted for strike action until July 24, with strikes set to be scheduled shortly after. Industrial action will severely impact operations at the plant and would cause significant disruption to the construction of the East Anglia 3 and Moray West offshore windfarms.

Unite regional co-ordinating officer Harriet Eisner said:
“Siemens Gamesa is set to cause huge disruption to its clients, which are constructing vital offshore windfarms, due to its own greed. There is still time to avoid industrial action, but that requires an offer from the company that is acceptable to our members.”

KeyFacts Energy Industry Directory: Siemens Gamesa