Swingeing pay cuts

Unite will ballot more than 200 North Sea oil rig workers for strike action in a dispute with the Wood Group over a swingeing 30 per cent pay cut.

The ballot, in conjunction with the GMB and RMT unions, will be sent to workers on eight of Shell’s North Sea oil and gas platforms.

The dispute stems from the Wood Group’s proposal to cut pay up to 22 per cent, but once reductions to other allowances are added, this amounts to a cut of 30 per cent.

A maintenance technician now earns 6.9 per cent less per offshore day due to changes to holiday pay. Recent changes have also seen workers move to a three-week working cycle.

The ballot comes as oil prices have recovered to hit an eight-month high as Brent crude reached over $50 a barrel yesterday (June 7). The price of oil has nearly doubled since January, when it hit its lowest level since late 2003 when the price of a barrel dropped below $30.

The ballot for strike action and also industrial action short of a strike will open on Wednesday (June 15) and close at noon on Wednesday, July 13 with any industrial action starting on July 20.

Wood Group is a multinational oil and gas services company with its headquarters in Aberdeen. The employees being balloted are working on the Shell ISC contract.

“Unite members are not immune to the challenges facing the oil and gas industry,” said Unite regional officer John Boland.

“We, along with other trade unions in the offshore coordinating group, have been leading the debate on the need to hold an emergency summit involving the Scottish and UK governments, employers and trade unions to deliver greater support for the sector.

“However, due to the intransigence of the Wood Group which is seeking to impose pay cuts of up to 30 per cent, our members have been faced with no other option but to consider strike action,” Boland added.

“We remain committed to constructive negotiations with the company and urge them to get back round the table, but they must be prepared to work with us to find an agreed settlement,” he noted.

“If management does not respond in a positive fashion then Unite will resolutely act to support and protect our members.”

@ShaunSearsNoble