Strike action, which had been been due to start at a UK fertiliser factory has now been averted as agreement has been reached for a pay rise for employees.

The strikes by Billingham workers employed by Hargreaves Industrial Services at CF Fertiliser’s plant have been called off after trade union, Unite, secured an improved pay offer.

The strike was set to potentially impact the supply of fertiliser for farmers, but has now been called off due to an improved pay offer.

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The majority of workers, who pack and load ammonium nitrate produced at the County Durham site, will see their pay increase from £11.55 to £14 an hour – a rise of 21.2%.

Higher paid roles will also receive substantial pay rises and all workers will see their shift allowance increase by 75%, according to the trade union.

The new rates will be back paid from April 2024 and workers with five years continuous service will gain two days extra annual leave.

Unite had previously stated that the company had a turnover of £59m and made pre-tax profits of £2.9m in the year ending May 2023.

CF Fertiliser had a turnover of £252 million in the year ending December 2023 and made operating profits of £30 million, according to the union.

According to the company, the Billingham complex has capacity for approximately one million tonnes of nitrogen (N) products for agricultural and industrial use yearly.

There are approximately 145 permanent employees at the facility.

Unite general secretary Sharon Graham said: “Hargreaves’ Billingham workforce achieved a fantastic deal by standing together in their union. They know that Unite does what it says on the trade union tin: Win better jobs, pay and conditions for our members.”

The deal, struck during the first set of negotiations since Unite signed a recognition deal with Hargreaves in June 2023, was secured without the need for industrial action.

Strikes scheduled from September 12-20 have now been called off.

Unite regional officer Neil Howells said: “Congratulations to Unite’s workplace reps at Hargreaves who worked incredibly hard to secure this deal for their members’ at the plant.

“Unite is always there to support workers who want to organise for better wages and to improve working lives.”

The union had previously warned that industrial action would escalate if the dispute is not resolved, and that Hargreaves and CF Fertilisers' pre-tax and operating profits of £2.9m and £30m in the years ending May and December 2023 respectively meant they can afford an improved a pay offer.

Last year, CF Fertilisers UK (United Kingdom) announced a proposal to permanently close the ammonia plant at its Billingham Complex in order to secure the long-term sustainability of its business in the UK and more efficiently serve its customers in the country.

CF Fertilisers UK made this proposal due to its forecast that producing ammonia at Billingham would 'not be cost-competitive for the long-term compared to importing ammonia' due primarily to projected high natural gas prices in the United Kingdom relative to other regions and the impact of carbon costs.

The company continues to produce ammonium nitrate (AN) fertiliser and nitric acid at the Billingham site using imported ammonia.