North Sea ‘race to the bottom’

Unite, the UK’s biggest offshore trade union, has reiterated its warning to the UK and Scottish governments that a new wave of cuts to offshore contractors pay rates will intensify a race to the bottom in employment standards across the UK Continental Shelf (UKCS).

 
The warning follows an announcement this morning (February 19) by Wood Group PSN that it plans to reduce the rates paid to a third of its UK-based contractors by 9 per cent, the third time the company has cut contractor rates since May 2014.

 
Unite has previously called for emergency tax breaks to alleviate pressure on the industry and release crucial finance to sustain existing jobs, skills and standards across the UKCS, which has been disproportionately affected in comparison with other oil producing regions during the oil price crisis.

 
“This is another blow for our members in the Wood Group who have already suffered cuts to their rates of up to 20 per cent, in the worst case examples, over the last two years,” said Unite regional officer John Boland.

 
“Our big fear is that this latest cut will spark another domino effect across offshore contractor firms, intensifying the pace of a race to the bottom on jobs, pay, skills and working-time,” he added.

 
“The consequences for employment standards in the offshore sector could be dire where the future outlook is fewer employees working longer and harder for increasingly less.

 
“Time and again we have warned government about the seriousness of what is happening in our oil and gas sector but the responses so far have amounted to sticking a plaster on a gaping wound,” Boland went on to say.

 
“How much longer must the offshore work force, which is eroding by the day, need to wait for a meaningful intervention?”