New national agreement affects thousands across UK engineering sites

A NEW pay deal covering workers at the Valero refinery in Pembroke has been agreed following months of stalled negotiations and industrial unrest across the UK engineering construction sector.

The agreement, reached under the National Agreement for the Engineering Construction Industry (NAECI), will see workers receive a 4.5% pay rise, alongside increases to travel and lodging allowances.

The deal applies to around 8,000 workers nationwide, including those employed on major energy and industrial sites such as Valero in Pembrokeshire.

Talks between employers and unions broke down earlier this year, marking the first time in more than four decades that a pay settlement had to be imposed before being put to workers. The agreement has now been accepted by a narrow majority following a ballot of the workforce.

Pressure on key industry

The engineering construction sector plays a critical role in maintaining and upgrading major infrastructure, including oil refineries, power plants and chemical facilities.

Industry representatives say the deal reflects difficult economic conditions, including rising costs, global instability and a shortage of skilled workers.

The Engineering Construction Industry Association (ECIA), which represents more than 150 employers, said the agreement strikes a balance between fair pay and maintaining the competitiveness of UK projects.

ECIA Managing Director John Simpson said: “We wanted to make sure that operatives receive fair pay and are pleased the 4.5% increase has been accepted. Our focus now is on ensuring long-term stability for the sector.”

Unions accept narrow deal

Trade unions GMB and Unite confirmed the deal had been accepted, but only by a slim margin, highlighting ongoing concerns among workers about pay levels.

Union representatives have already called for talks on the 2027 agreement to begin without delay, signalling that tensions within the sector remain.

Workers have previously argued that pay increases have not kept pace with the rising cost of living, despite long-term gains in wages across the industry.

Local impact at Valero

The Valero refinery in Pembroke is one of several UK sites operating under the NAECI framework, which sets national terms and conditions for engineering construction workers.

The site is a major employer in Pembrokeshire and plays a key role in the Welsh economy, meaning the outcome of national pay negotiations has a direct impact on local jobs.

What happens next

With the 2026 deal now agreed, attention will turn to future negotiations and wider industry challenges, including recruitment, investment and maintaining stable industrial relations.

Both sides have indicated a willingness to return to the table, but the narrow vote suggests further disputes cannot be ruled out.

ENFORCEMENT action is to be taken against a Pembrokeshire caravan park after it has failed to deliver on an affordable homes element of a successfully appealed planning application.

At the April 22 meeting of Pembrokeshire Coast National Park’s development management committee, members were asked to support enforcement actions against Ridgeway Resort, formerly known as Buttyland Caravan and Camping Park, Station Road, Manorbier, for non-compliance of legal agreements connected to a scheme which included affordable housing, along with a failure to respond to a requisition for information.

Back in 2021, the Planning Inspectorate Wales overturned Pembrokeshire Coast National Park’s 2020 refusal of an application at Buttyland Caravan and Camping Park, Manorbier, which included outline planning for 14 affordable units, full planning for upgrading the existing caravan park from 85 temporary pitches to 85 year-round static caravans, and full planning for a new sewage pumping station.

A report for members at the April 22, 2026 meeting said the final permission was subject to a long string of conditions including the transfer of land to the local housing authority or registered social landlord for the provision of the affordable housing element of the proposal.

One of those conditions was the transfer of the affordable housing land within 30 days of the commencement of development to the local housing authority or a registered social landlord.

Another was the provision of the caravan site and associated infrastructure, not being allowed nor any caravan to be occupied unless the transfer has been completed.

The report said that, back in May 2023, Park officers raised concerns over the pre-commencement conditions, adding the owner “had suggested that there had been issues in negotiating a transfer with one registered social landlord”.

It added: “Following this letter a number of applications to discharge pre-commencement conditions were received by the Authority, however the full information necessary to determine these applications was not received until June and August 2025, following further requests for information.”

A further site visit took place in 2024, with no transfer of the affordable housing land having taken place, the owner telling officers on site that he believed he had transferred the land to the National Park, which had not happened.

It was stressed that, as static caravans had been placed on site there was an urgent and immediate need for the transfer of this land to take place amongst other matters, the report said, adding site visits in May 2025 demonstrated that 17 caravans had been installed at the site, with 16 occupied and one acting as a showroom.

The report concluded: “This situation is particularly significant as the permission granted was based on the provision of affordable housing as a critical element of the overall permission.”

At the meeting, members heard that, after the report was commissioned, officers had been contacted by a legal representative of Ridgeway, asking for the matter to not be proceeded with, saying good progress had been made.

Members heard from officers there were still “fundamental breaches,” especially around the delivery of the affordable housing.

Members agreed to the enforcement action, with officers given delegated powers to instruct solicitors to start injunction proceedings in relation to the ongoing issues with the legal agreement.

PLANS for a rural enterprise dwelling to support a Pembrokeshire horticultural business which supplies its produce to “some of the best restaurants in Wales” have been approved despite concerns from the local community council.

In an application recommended for approval at the April 22 meeting of Pembrokeshire Coast National Park’s development management committee, Southern Roots Organics/Awen Organics, through agent Preseli Planning Ltd, sought permission for a rural enterprise dwelling, track extension, and associated works at Eithin Farm, Felindre Farchog, near Nevern.

This application was presented to the Development Management Committee as local community council Nevern had objected to the application raising material planning matters, contrary to the officer recommendation for approval.

An officer report says Eithin Farm comprises about 25 acres of agricultural land, with an additional seven acres to be rented by the applicants; the applicants running a horticultural business from the site, using multiple polytunnels and employing irrigation systems which require careful management.

The report says the business has been trading for over three years and can support a full-time worker, meeting criteria which addresses planning for sustainable rural communities. The proposal is said to meet these requirements, and the officer’s report confirms a genuine need for the dwelling.

Nevern, in its objection, said: “The living accommodation is supposed to be part of the business, it needs to be closer to the sheds, making the whole enterprise more aesthetically pleasing. The area designated for future seasonal agricultural workers would be an areas that would be more appropriate for a traditional cottage. A restriction on the house, a tied house needs to be considered.”

Objections to the plan have also been received from members of the public raising concerns including foul water disposal and the application “has nothing to do with the new current business”.

However, a number of representations have expressed support for the application. Issues raised include the benefit of applicants living on site, helping to reduce travel and carbon emissions, and confirming support for local, small-scale horticulture, and the contribution the business makes to the community.

The report said there is an identified need for a rural worker’s dwelling, especially due to the need to quickly respond to changes in crop conditions and potential failures in irrigation or ventilation systems, the proposal “considered to be acceptable and a recommendation to grant permission is made”.

Speaking at the meeting, Adam and Dee of Southern Roots Organics/Awen Organics said the business employed 14 workers, including themselves, “supplying some of the best restaurants in Wales,” with thousands of trees planted, the business also having been shortlisted for an organic farm award.

Members heard they currently had a 20-minute commute to the site from Cilgerran, often starting work at 5.30am and working through to as late as 10pm.

Members also heard that alternative locations, as favoured by Nevern Community Council, would lead to the loss of apple trees in an orchard.

Members backed the officer recommendation, committee member John Hogg praising the applicants on their achievements.