Balfour Beatty Engineering Services (BBES) has withdrawn from the controversial Building Engineering Services National Agreement (BESNA) the proposed new national agreement for mechanical, electrical and plumbing workers in the building engineering services sector following its failed legal action.

The pullout follows BBES failure to win a High Court ruling to prevent a strike by the Unite union against proposals to change long-standing Joint Industry Boards agreements and replace them with new semi-skilled grades.

Unite, Britain’s largest trade union, welcomed the withdrawal of the contracts by BBES, which it said would have resulted in the termination of long-held agreements and the de-skilling of construction workers.

BESNA is being introduced by the Heating and Ventilating Contractors' Association on behalf of the seven major construction companies in the Building Engineering Services Industry.

The imposition of the new contracts by BBES were at the heart of a long running dispute, which saw electricians, plumbers, heating and ventilating engineers vote overwhelmingly for strike action twice.

The withdrawal of the contracts follows talks between Unite general secretary, Len McCluskey and Balfour Beatty’s chief executive officer Mike Peasland. unite said they will now be followed by further high level talks to secure members’ livelihoods and the stability of the industry.

The firm and the union have now issued the following joint statement:

“The current dispute between Unite and the seven companies who are promoting the BESNA agreement is causing serious concern within the industry and threatens to escalate into a damaging conflict.

The objective of the seven companies was to address perceived shortcomings within current working rules agreements and to offer ways to create a more modern approach in the current competitive environment.

Unite understands the questions raised by those seven companies and believes a review of the JIB and other industry working rule agreements is desirable.

BBES has agreed to withdraw the BESNA contracts and Unite has agreed not to pursue further industrial action or protest on the basis that wide ranging talks will now take place on modernising the industry. Both parties are committed to high level talks within an agreed timeline with the aim of creating new proposals and ensuring agreed terms are honoured.

It is the intention of Unite, along with the employers’ associations and reputable companies, to bring stability and fairness to this section of the construction industry.”

The BESNA website says that in a difficult economic climate, the new agreement would create job security for existing employees as well as give apprentices and skilled staff a bright future. It states:

“The Building Engineering Services industry has changed significantly in the last 20 years and we must respond to our customers’ needs. Modern construction methods have changed considerably and there is now increased overlap between disciplines with multi-skilled teams often required. The industry needs an agreement that reflects changes in these working practices.”

Unite said that the new contracts would have led to pay cuts of up to 30 per cent and poorer terms and conditions for key construction staff. The union said it had been advised that there are companies acting outside the JIB and gave notice that they would be “singled out for action in order to bring them back in line” with the acceptable standards of the industry.

What this further action would involve has not been clarified.