Unite refused to endorse Labour after Scots oil and gas 'failure'

Despite pre-manifesto election assurances over the energy future from Labour leader Keir Starmer, he has failed to roll back a ban new fossil fuel project licences in the North Sea.

There is concern that Labour's vision for the transition from oil and gas in the North Sea come despite fears over major job losses by 2030, one of the key concerns of the Unite union.

The general secretary of Unite Sharon Graham, had recently told members that in the wake of Mr Starmer's comments about Labour's energy strategy in Scotland: "Now we need to see that plan."

READ MORE: Union warns £6.6bn needed now to save 30,000 Scots oil and gas jobs

A senior Unite source said  one of Ms Graham's red lines about the manifesto was the insistence on banning new licenses for new oil and gas exploration in the North Sea.

The source said: "She told union members it was a deal breaker after refusing to endorse the Labour manifesto."

Unite sources said before the manifesto was published that the the Labour Party's plan to transition from oil and gas was "weak" and that its rebellious 'No Ban Without a Plan' campaign in Scotland which involved diverting funds that would be expected to be used to elect a Labour government would continue and will be stepped up.

The Labour manifesto says "we can make Britain a clean energy superpower" saying that it will will work with the private sector to double onshore wind, triple solar power, and quadruple offshore wind by 2030.

On oil and gas it says: "Labour will maintain a strategic reserve of gas power stations to guarantee security of supply. We will ensure a phased and responsible transition in the North Sea that recognises the proud history of our offshore industry and the brilliance of its workforce, particularly in Scotland and the North East of England, and the ongoing role of oil and gas in our energy mix.

"We will embrace the future of energy production and storage which will make use of existing offshore infrastructure and the skills of our offshore workforce.

"Labour will not revoke existing licences and we will partner with business and workers to manage our existing fields for the entirety of their lifespan. Crucially, oil and gas production in the North Sea will be with us for decades to come, and the North Sea will be managed in a way that does not jeopardise jobs. And our offshore workers will lead the world in the industries of the future.

"We will not issue new licences to explore new fields because they will not take a penny off bills, cannot make us energy secure, and will only accelerate the worsening climate crisis. In addition, we will not grant new coal licences and will ban fracking for good."

The party and the trade union movement have been instrinically linked historically.

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In 1899, a Trades Union Congress resolution began a chain of events that led to the establishment of the Labour Representation Committee in 1900 and the party soon after.

But Electoral Commission data seen by the Herald shows that the level of reliance on unions for donations has dwindled dropping from two pounds in every three the year before Labour's last General Election victory in 2005 to less than one in five before the forthcoming one.

Unite's campaign demanded that over £6.6bn must be committed over the next six years to save over 30,000 Scots oil and gas jobs by the end of the decade.

Labour's biggest union backer has been targetting six key Scottish election constituencies that were heavily dependent on oil which the Labour Party hoped to seize at a forthcoming general election, calling for the party to reconsider its current policy banning new oil drilling licences.

The campaign involved the erection of billboards, paid advertising displays, and canvassing residents.

Ms Graham warned through the Herald that the nation's oil and gas workers were heading toward becoming "the coal miners of our generation" through the loss of jobs.

She urged Labour to become "the heroes of the hour" by committing to the union's radical investment plan which would save 30,000 jobs and create 6,000 more by the end of the decade while scrapping the proposed 'no oil and gas projects' ban.

About three-quarters of the country's 187,000 miners went on strike in 1984 and 1985 to oppose pit closures, which were expected to mean 20,000 job losses.

The union says that the "attempts" by Labour to reassure North Sea workers came after intense media pressure.

Mr Starmer said that the party's green energy plans will ensure the UK’s transition away from oil and gas does not repeat mistakes from the phase-out of coal.

Labour also wants to set up a new public company, branded Great British Energy, to be headquartered in Scotland, and it has been a feature of campaigning in Scotland.

Labour wants to hand the Scottish-based energy company £8.3bn over the next five years for investments, funded by a windfall tax on the profits of oil and gas companies.

The government already has such a tax, recently extended until 2029, but Labour would charge a higher rate and close some tax allowances for investment.

But it has been confirmed that Mr Starmer's vision has not been enough for Unite, which is continuing its campaign to save Scottish jobs across Scotland.

In the year before this election (2023), the Labour party pulled in £29.684m in donations of which £5.535m (18%) was from unions.

In 2018, the year before the 2019 general election in 2019, the Labour Party brought in £17.282m in donations of which £6.572m (38%) was from trade unions.

And in 2014, the year before the 2015 general election, some £7.998m (39%) out of £20.502m of Labour donations came from trade unions.

In 2004, the year before Labour's last election victory under the leadership of Tony Blair, more that two pounds in every three donated was from unions. The party brought in £14.776m of which £9.94m was from trade unions.

Labour has pledged to work with the SNP government to deliver the long-awaited ‘skills passport’ for oil and gas workers as part of a bid to help protect North Sea jobs.

The Herald has previously revealed that The oil and gas industry in Scotland has shed nearly 40% of its jobs amounting to 50,000 in Scotland over a decade, according to industry figures - while the number gained from low carbon enterprises has risen by just 2,500.

Unite's billboard campaign hit Glasgow.

Data gathered by the trade association, Offshore Energies UK working with the multinational data analytics and consumer credit analysis Experian found that the number of jobs directly and indirectly employed in oil and gas in Scotland have crashed by nearly 40% since 2013 from 117,900 to just 74,100 in 2022. That includes 31,000 directly employed and 43,000 indirectly.

Unite gave Labour £3.5m in the run-up to the 2019 general election, making it by far the biggest single contributor to the party’s campaign. Currently, it has £29m in its political fund.

Uplift - an organisation campaigning for a fair transition away from oil and gas - said Labour's commitment to end oil and gas licensing was "very encouraging".

Tessa Khan, executive director at Uplift said: “New licences will do nothing to lower energy bills, boost energy supply or secure jobs, which have halved in the last decade as the basin declines, even though hundreds of licences have been issued in this time. Between now and 2050, new licences are expected to provide just four days worth of extra gas on average.

“The oil and gas companies will complain, but the time for them to follow through on their promises and transition to clean energy is now. The world already has more than enough oil and gas to push us past safe climate limits and the impacts we are seeing today – from flooded British farms to soaring temperatures around the world – will only get worse.

“Meanwhile, the benefits to the UK from transitioning to homegrown renewable power are enormous, whether that’s creating more jobs, growing the economy or lowering household bills. Ending new licensing is a clear signal to the industry and investors that the UK is ready to seize these opportunities.

“It is encouraging to see an acknowledgement of the urgent need to support the offshore workforce and communities currently dependent on oil and gas and we look forward to seeing more detail.”