An in-depth investigation, called for by the Unite trade union, has revealed that non-UK workers at Staythorpe power station in the East Midlands have been losing out on thousands of pounds in pay, due to a subcontractor paying them significantly below the agreed rates for the engineering construction industry.

An auditor's report has revealed that some workers employed by Italian subcontractor CMN at Staythorpe power station have been underpaid by an average of 1,300 euros a month. Last year the power station was the focus of demonstrations by qualified workers who had been excluded from applying for work at the site. An unofficial dispute at Lindsey oil refinery over the same issue also spread across the country last year.

Unite, has consistently warned that UK workers, and contractors who play by the rules, were losing out to contractors who exploited non UK workers and flouted the national agreement for the engineering and construction industry.

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Unite's Assistant General Secretary, Les Bayliss, said: "The underpayment of these workers is outrageous. We have demanded that the workers are paid back in full. These revelations are proof that construction workers have genuine concerns which the industry has consistently tried to deny existed.

"Some workers at Staythorpe were losing out on thousands of pounds in pay that they were rightly owed. Unite will not allow employers to get away with breaking agreements and underpaying its workers, regardless of nationality.

"The UK is on the brink of a major programme to build new power stations. The actions of contractors like CMN are putting contractors who play by the rules at a serious disadvantage when bidding for work. The main contractors and auditors at engineering construction sites across the country need to do more to ensure these practices are not being repeated elsewhere."

The audit was conducted by Global Project Audit Services Limited. During the period between April 2009 and December 2009 an average of 17 workers a month were being underpaid by an average of 1,300 euros per month. The peak number of workers being underpaid was 24 during August and September.

The contractor has agreed to correct the underpayments including paying back pay.

(CD/GK)