Ratcliffe Power: a fair transition for workers at the last coal plant in Britain

Site details 

Site name: Ratcliffe-on-Soar power station
Operator: Uniper
Location: Nottinghamshire
Country: UK
Date: 2020-2024

How unionised workers at Ratcliffe-on-Soar Power collaborated with their employer to successfully redeploy the workforce.

Nine miles from Nottingham, Ratcliffe-on-Soar Coal Power Station supplied Great Britain with power for 57 years, following its commissioning in 1968. It was established by the state owned corporation the Central Electricity Generating Board, who operated it until electricity generation was privatised under the Electricity Act 1989 by Margaret Thatcher, from which point the site has been in private ownership.

Ratcliffe had a 2GW generation capacity, capable of producing enough electricity to power more than two million homes. The plant burnt over 5 million tonnes of coal per year – most of the output of the local coal mines until these were shut down. By the 2020s, about 350 Uniper staff and contractors worked on site, and three unions were recognised at the site: GMB, Prospect and Unite the Union.

The challenge

By 2009, it was clear that burning coal had to be phased out in order to curb dangerous climate change. The then energy minister Ed Miliband announced that “The era of new unabated coal has come to an end”. And in 2015, the UK government announced that all coal power stations would close by 2025 (subsequently brought forward to 2024). From this point, the workforce at Ratcliffe was aware of the inevitable fate of their plant, and the need for a proper transition plan to support the workforce through the site’s closure.

What workers did

In 2020, representatives from the recognised unions (GMB, Prospect & Unite the Union) set about planning and negotiating for a solid transition plan for the entire workforce. By this point, the three unions had prior experience of negotiating and ensuring a smooth transition for the workers at two other coal power plant closures: EDF’s Cottam and West Burton A coal power plants.

There was initially a mixed reception amongst the workforce, with some not believing the site would close, and others feeling it was too early to start planning. The majority recognised the need to be proactive, given that the trajectory for the site was clear. Uniper local management were receptive to initiating discussions. Reducing the risk of an unmanaged transition had mutual benefit to the employer: it would prevent employees leaving early, which would leave a skills vacuum given that it takes four years for new recruits to become fully trained.

Between 2020-22 unions mapped out skills and demographics of the workforce in order to identify potential future options for different groups of employees, depending on age, skills and level of experience. From 2022 until plant closure, extensive co-planning and negotiations took place between Uniper and the workforce in order to agree provisions and terms for the outgoing workers, including training packages, job transfer schemes, voluntary redundancy terms and transition phasing (see below for further detail).

Chris Howe, GMB Workplace Representative at Ratcliffe, described how trade unions having a seat at the table in putting together a plan for site closure “played a huge role in ensuring that what can be a stressful process and time in people’s lives is transitioned smoothly, achieving a positive outcome whenever possible.”

He explained that “early engagement, cooperation, and collaboration” was "crucial in minimising the impact of the site closure on employees.”

How were obstacles overcome?

The most significant obstacle during transition planning was the threat of bankruptcy faced by Uniper during the 2022 energy crisis, triggered by Russia’s invasion of Ukraine. As a major German gas power generator, Uniper was hit hard by quadrupling gas prices, and only narrowly averted insolvency. The German government1 stepped in and took on 99% of Uniper shares. 2

At this stage there was a significant risk that the negotiated and agreed terms thus far would be lost with the change in ownership. However, the Ratcliffe unions’ position on the European Works Council - a forum that brings together workers’ representatives in different European countries who all work for a given multinational company - proved instrumental. The Ratcliffe unions retained strong relations with German trade unions (Ver.di and IGBE in particular) who supported them to negotiate with the German government, who ultimately took the decision to honour the commitments already made by Uniper.

Prospect’s Negotiation Officer Mike Macdonald also explained that "Being on the [European] Works Council really helped us as German trade unions held our corner and helped us to keep the ground we gained."

What was the result?

While the closure of the plant inevitably led to job losses, the story does not end with a bitter taste in the mouths of workers. The recognised unions and the Uniper Executive team put a successful plan in place. This meant there was a coordinated process to identify new jobs for workers to move across into, backed up by funding and support for workers to reskill, retrain and find new high-quality jobs, whilst also ensuring the plant was able to continuously produce electricity.

Some achievements of the transition plan included:

• Internal transfer opportunities to new, high-quality jobs within Uniper. For example, in the onsite Technology Centre, Connah's Quay Power Station and Cottam Development Centre power plant.
• External job opportunities due to relationships which Uniper developed with businesses within the sector, such as Enfinium’s Skelton Grange plant.
• A ‘Peoples Hub’ was created to effectively work as an on-site job centre. This hosted job fairs that included participation from local employers such as Drax, as well as other Uniper-owned sites.
• Flexible release was granted, allowing all workers to leave for new employment prior to their agreed redundancy date, while still being entitled to their full redundancy package.
• Workers were able to attend external training courses which were fully funded by Uniper. They were also released from their normal working schedule to attend these courses.
• An enhanced voluntary redundancy package.
• While the closure of the power station brings great sadness to many, the atmosphere within the workforce is also remarkably positive. The well-managed transition, by both Uniper and the recognised unions, has resulted in a feeling of relief.

• 1 https://www.uniper.energy/news/uniper-terminates-russian-gas-supply-con….  
• 2 https://www.reuters.com/business/energy/germany-completes-nationalization-uniper-ministries-2022-12-22/

Success factors & lessons

Around 3-6 bullet points key lessons that may be useful for other sites facing similar pressures, focus on the aspects of the story that are generalisable / consider the context in which they may be useful for other workers. Aim for a few sentences for each lesson.

Success factors of the transition of the workforce at Ratcliffe include:

• Early notice of the phase-out date for coal power due to the existence of policy signals
• A proactive approach by the unions to initiate workforce planning five years ahead of the closure date
• Coordinated pathways into new jobs, including engagement with external employers
• A positive and collaborative outlook from the employer, including commitment to invest in skills training and paid time off, and strong redundancy packages
• Strong relations with international trade unions through the European Works Council, who supported them to negotiate retention of agreed terms