Clarity call

 Unite is calling on the Prime Minister to clarify the UK government’s long-term plan for the oil and gas sector amid rising workforce fears of a ‘race to the bottom’ across the UK Continental Shelf.

The Prime Minister said he would set out “a bridge to the future” for the sustainability of employment in the UK’s largest industrial sector. As of 2014, the industry was estimated to support around 375,000 jobs across the economy.

But as he announced a new ‘city deal’ for Aberdeen and the north east of Scotland economy , offshore workers demanded more details about  how the UK government will stop the year-long campaign of cuts to jobs, terms and conditions.

Over 65,000 jobs and rising have been lost since January 2015 and turbulent market conditions continue with the price of oil at just over $32 a barrel.

 

Severe situation

 “We are pleased that our political leaders are recognising the severity of the situation and investing in the north east economy which has been hammered by the oil price slump,” said Unite Scottish secretary Pat Rafferty.

 

“We’ve also heard calls from the Scottish Government for further tax breaks for the offshore industry. But workers now need clarity from the Prime Minster about how he intends to safeguard employment, skills and also occupational safety across the UK Continental Shelf.

Job cuts

 

“The response of many companies to the crisis has been one of maximum efficiency at the lowest cost possible – imposing heavy cuts to jobs, terms and conditions in the process – but this ‘race to the bottom’ cannot continue indefinitely,” he added.

“The workforce must be the biggest beneficiaries of all future investments and tax breaks.  This can be achieved by demonstrating that money is directly allocated to employment and improving safety standards instead of beefing-up profit margins.

Need sector

 

“The UK needs the oil and gas sector to contribute to energy supply security and economic growth but this cannot be achieved with an increasingly casualised workforce and an occupational safety regime relegated to a second-tier priority,” said  Rafferty.

The City Deal agreement was formally signed by Scottish Secretary David Mundell and the Scottish government’s infrastructure secretary, Keith Brown, in a ceremony in Aberdeen. It  includes funding for an energy innovation centre and the expansion of Aberdeen harbour to help the city compete for oil and gas industry decommissioning work.

The deal also includes proposals to help exploit the remaining North Sea oil reserves. Oil and gas are expected to continue to provide around 70% of the UK’s total primary energy from now until 2035.