GMB says ‘this is the kind of behaviour that will give net zero a bad name – Ministers must intervene’
Drax Power Station
Up to 150 jobs are set to go at major regional employer Drax as part of a transatlantic restructure branded “a devastating blow” by union leaders. The power giant – owner and operator of the country’s largest power station based between Goole and Selby – last month announced a restructure as part of plans to build “a strong, resilient business for the future”.
The firm said it would be consulting with staff in both the US and the UK, amid plans to reduce its workforce by 350 jobs across the two countries. Now it has emerged that up to nearly 150 roles are poised to be axed at the Yorkshire site – a move which could represent up to a loss of 31 per cent of the 465 total staff at Drax.
A letter sent out to employees, which has been seen by Hull Live, says that between 19 per cent and 31 per cent – 89 to 148 employees – may be made redundant. The letter states how and why it is proposing changes to its organisational structure and ways of working to “ensure Drax Power Station operates efficiently and effectively within the required financial envelope while maintaining our ability to fulfil our contractual obligations under the Low Carbon Dispatchable Contract for Difference”.
It says the contract for difference allows it to continue “to create options for the future of Drax Power Station” but adds that it means it will “need to make some changes to the way we structure our team at Drax Power Station and roles across the site may be affected by this.” The letter outlines how Drax is keen to mitigate compulsory job losses and will be looking to consult around options for voluntary redundancies.
Deanne Ferguson, GMB senior organiser, said: “This is a devastating blow for Drax workers and their families, as well as the local community that surrounds the area. Drax has trousered vast sums of public money – then wants to make everyone redundant when it runs out.
“This is the kind of behaviour that will give net zero a bad name – Ministers must intervene.”
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When the FTSE 250 listed Drax first announced the restructure earlier this month, the firm said it is “focused on driving growth in our flexible generation business”.
The biomass power station operators said: “As the global business and energy landscape continues to develop, we’re evolving our strategy to ensure we’re building a strong, resilient business for the future. The recent signing of the low-carbon dispatchable CfD agreement is recognition of the important role that Drax Power Station will continue to play for UK energy security into the 2030s.
“Moving forwards, we’re focused on driving growth in our flexible generation business, creating new options and opportunities at Drax Power Station beyond 2031, and advancing future uses of sustainable biomass. To help realise these opportunities, we’re adapting our organisational structure.
“As a part of that process, we are commencing a consultation process in the UK, and will be briefing colleagues in North America on changes that could result in a reduction of more than 350 roles across the Drax Group. We believe these changes are key to our long-term success and our continued commitment to deliver UK energy security and to support the energy transition.
“This is in no way a reflection of the professionalism, passion and commitment that our colleagues have shown. We will support our colleagues as we develop these proposals and work closely with our unions and elected employee representatives as we implement them.”
At the end of last year Drax made two significant announcements, including its plans to establish a data centre at its Yorkshire site, with plans to repurpose existing infrastructure at the power station to develop a data centre. A centre could be operational as early as 2027, and it indicated it plans to allocate up to £2bn for incremental investment, primarily in flexible and renewable energy.
It also struck a £157.2m deal to acquire three battery energy storage system (BESS) projects. The sites are based in Marfleet in Hull, Neilston in East Renfrewshire, Scotland, and East Kilbride in Lanarkshire, Scotland.
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