Clean energy funding to be tied to stronger workers’ rights
Offshore wind firms must sign up to a ‘Fair Work Charter’ to participate in government renewables auctions.
- Offshore wind firms must sign up to a ‘Fair Work Charter’ to participate in government renewables auctions, ensuring public funding delivers strong rights at work and access to trade unions
- Changes will deliver the benefits of landmark Employment Rights Act sooner for participating offshore wind workers, paving the way for more trade union recognition in the energy sector
- This follows a record offshore wind auction, which crowded in £3.4 billion of private investment to build factories, ports and supply chains, supporting well-paid jobs in coastal communities and industrial heartlands
Working people in coastal communities and industrial heartlands will benefit from stronger workforce protections and secure, skilled jobs, as the government confirms that it will implement significant reforms to boost workers’ rights.
Offshore wind is a British success story, supporting secure and skilled jobs across the country - with industry estimates showing a typical offshore wind salary is around £10,000 higher than the UK average. The government expects to deliver 100,000 jobs in the sector through its ‘Clean Energy Jobs Plan’, and it is essential that these jobs are always secure, with strong rights for the growing workforce in the years ahead.
That’s why under changes announced today (Wednesday 4 February), offshore wind companies seeking to participate in Contracts for Difference and access the Clean Industry Bonus will be required to sign up to a new ‘Fair Work Charter’, ensuring that public funding delivers good, secure jobs in local communities.
The ‘Fair Work Charter’, which was developed jointly between industry and trade unions, will ensure that workers in the offshore wind sector get early access to some of the benefits granted by the government’s landmark Employment Rights Act. This includes providing trade unions with better access to workplaces and opportunities to engage with workers, as well as clear standards on health and safety in the workplace.
These upgrades to rights at work will pave the way towards trade union recognition in offshore wind companies, and build towards comprehensive agreements between developers and trade unions in the future, which could include commitments on pay, apprenticeships, and inclusive workplaces.
By linking public funding to strong employment standards and partnership with trade unions, the government is making clear that the UK’s mission for clean, homegrown energy must also be a jobs transition - providing long‑term opportunities for oil and gas workers, apprentices and young people entering the workforce.
The government has also set out plans to drive private investment in offshore wind skills, requiring contribution to a skills funding pot by 2027 to help train future generation of technicians in the wind sector. 90% of the oil and gas workforce possess skills that are transferable into offshore renewables.
Energy Secretary, Ed Miliband said:
Clean energy jobs should always be good jobs, with decent pay and the very best rights at work.
By securing more clean, homegrown energy we are driving billions in private sector investment into UK ports, factories and manufacturing, unleashing a clean energy jobs boom from East Anglia to Aberdeen.
But we must ensure these jobs are future-proof, secure and well-paid. So we are stepping in to make sure public funding serves the public good – raising the bar for workplace standards, giving workers access to trade unions and guaranteeing a stronger voice in how their workplaces are run.
This follows the biggest single procurement of offshore wind energy in British and European history last month, where the government secured a record capacity of 8.4 GW of offshore wind - enough to power over 12 million homes - at a price 40% lower than the cost of operating and running a new gas power plant.
Through this auction, the government crowded in up to £3.4 billion of private investment through the Clean Industry Bonus into British manufacturing, factories and ports. This is ensuring offshore wind projects procure key infrastructure from across Britain’s industrial heartlands.
For every £1 of public money invested through the Clean Industry Bonus, £17 of private investment has flowed into supply chains in some of the most deprived areas of the country, supporting up to 7,000 jobs according to industry estimates - including skilled roles such as electricians, welders and engineers.
Eddie Dempsey, General Secretary of the RMT, said:
This is a welcome move to link clean energy funding with real workers’ rights and trade union access.
Due to our campaigning, the government is signalling to developers and contractors that they must work with trade unions to deliver decent jobs, collective bargaining and safe, secure workplaces which benefit workers within the renewable energy sector.
RMT has long argued that the transition to renewables must be achieved through retention of a skilled workforce, maintaining quality employment and effective engagement with trade unions at the heart of all decisions.
The ‘Fair Work Charter’ is a positive step and our union will continue to pursue progress in employment protection, safety standards, and skills as the foundation to provide quality, secure jobs within the renewable energy sector.
Paul Nowak, General Secretary of the TUC, said:
Workers in growing industries like offshore wind must have good quality jobs. This initial ‘Fair Work Charter’ is a welcome step in the right direction.
Offshore workers keep the lights on and increase our energy independence so we don’t have to rely on Putin’s Russia. That’s why it’s important that the government has brought together unions and industry to negotiate a pathway to decent work.
But this has to be just the start - more work needs to be done to lift pay and conditions in the sector. We look forward to the full ‘Fair Work Charter’ which can play a vital role boosting trade union recognition and collective bargaining.
Sue Ferns, Senior Deputy General Secretary of Prospect, said:
This ‘Fair Work Charter’ is a welcome step in addressing the discrepancy and will lay the groundwork for a more comprehensive agreement in future.
If the public are going to get behind the drive to decarbonise the energy sector then they need to start seeing the good quality jobs which have been promised, especially in coastal communities which often miss out on economic opportunities.
The charter provides a blueprint for creating those good jobs and we must build on the precedent it sets.
Donna Rowe-Merriman, Head of Energy at UNISON, said:
The message to employers is clear, that workers’ rights and health and safety aren’t optional. They’re crucial to the UK’s successful transition to renewable energy, and investment in this high-growth sector.
The ‘Fair Work Charter’ will help ensure the move to clean energy creates well-paid, secure jobs. It also gives employees a strong voice from day one of any offshore wind contracts.
Scott Young, Director of Renewable Delivery at RenewableUK, said:
The offshore wind industry is working closely with the government and trade unions to ensure that we maximise the number of high-quality, well-paid jobs we create through the introduction of the ‘Fair Work Charter’ and a proposed new skills investment fund.
There are currently 40,000 people working in the sector, and we need to build on this by recruiting and retaining tens of thousands of skilled workers in the years ahead to design, construct and operate the UK’s vast pipeline of offshore wind farms.
To do this, we’re investing in training, building on the industry’s record of high-quality employment practices and cementing our world-leading approach to health and safety. We’ll need a wide range of people with the right skills, from development and operations to roles in our rapidly expanding supply chain manufacturing high-value components in factories all over the UK.