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Industrial services company Hertel will withdraw 40 non-U.K. workers from a project at the South Hook liquefied natural gas terminal after U.K. workers demanded it offer the jobs to local workers, it said Wednesday.

"Following discussions today we have agreed to withdraw immediately all 40 non-U.K. workers and will be looking to directly employ suitably skilled U.K. workers," Hertel U.K.'s managing director David Fitzsimons said in an e-mailed statement.

The dispute at the South Hook LNG terminal at Milford Haven, Wales, triggered walkouts by hundreds of contract workers across U.K. energy facilities Tuesday and Wednesday.

"We trust this will bring the unofficial strike action to an end and hope staff will agree to return to work today," Fitzsimons said.

The U.K. contractors, who mainly worked in construction and maintenance, objected to Netherlands-based Hertel's use of foreign labor over local labor, the U.K.'s GMB Union said Tuesday. Hertel was contracted by the South Hook LNG Terminal Company Ltd. to carry out a three-week insulation project at the terminal.

The wave of walkouts echoed similar industrial action in January and February over French oil major Total SA's (TOT) awarding of a construction subcontract at its 200,000 barrel-a-day Lindsey oil refinery in northern England to Italy-based company Irem SpA. Total also struck a deal earmarking more jobs for U.K. workers.

Workers at ConocoPhillips' (COP) 221,000 barrel-a-day Humber refinery in northern England walked out for a second day in sympathy with the South Hook workers Wednesday. They were joined by contractors from the nearby Lindsey refinery.

Around 800 protestors participated in a peaceful protest near the refineries, local police said.

Meanwhile, 300 contract workers at RWE AG's (RWE.XE) Aberthaw Power Station in Wales downed tools for a second day and 100 contractors at U.K. power company Scottish and Southern Energy's (SSE.LN) Fiddlers Ferry power station walked out. Fifty contractors employed by Hertel at Chevron Corp.'s (CVX) 220,000 barrel-a-day Pembroke refinery also left their posts.

Operations weren't affected at the six sites where unofficial strikes were reported.

Hertel said it hoped to have the replacement workers employed on the South Hook site this week.

"Though we were unable to find qualified, local employees to fill the roles when first recruiting for the project, we have now been told that a number of applicants are available," Fitzsimons said. "Our policy is always to recruit local and U.K. people where they are available and have the right skills and qualifications, although using the original, non-U.K. workforce employed by our sub-contractor did not contravene national agreements negotiated with the relevant trade bodies," the company added.

-By Lananh Nguyen, Dow Jones Newswires; +44 (0)20-7842-9479; lananh.nguyen@dowjones.com

 
   (Angela Henshall, Nick Heath, Sherry Su and Selina Williams 
in London contributed to this report.)