{"id":7632,"date":"2016-02-05T16:10:33","date_gmt":"2016-02-05T16:10:33","guid":{"rendered":"http:\/\/unitelive.org\/?p=7632"},"modified":"2016-02-08T13:10:04","modified_gmt":"2016-02-08T13:10:04","slug":"speaking-as-one","status":"publish","type":"post","link":"https:\/\/unitelive.test.igniteamt.com\/?p=7632","title":{"rendered":"Speaking as one"},"content":{"rendered":"
<\/div>\n

A shadow is cast over Aberdeen, as one of the most prosperous cities in the UK now bears witness to queues outside the door at food banks, formed virtually overnight.<\/p>\n

 
\nThe oil industry has been shaken to its foundations and the crisis shows no sign of abating anytime soon. The price of Brent crude oil plummeted at one point this year to less than $30 a barrel \u00e2\u20ac\u201c that\u00e2\u20ac\u2122s a 70 per cent price drop in only 18 months.<\/p>\n

 
\nTo put this figure into perspective, a decade ago, $90 to $100 a barrel was considered normal.
\nNews of the latest raft of job losses came this week, when Shell announced decimated annual profits of 80 per cent, and added that they plan to shed 10,000 jobs globally.<\/p>\n

 
\nAnother major oil company, BP, also announced its intention to axe 7,000 jobs this week, after posting an annual loss of \u00c2\u01414.5bn \u00e2\u20ac\u201c the worst performance in its entire history.<\/p>\n

 
\n\u00e2\u20ac\u0098Not your typical oil bust\u00e2\u20ac\u2122<\/strong><\/em>
\nThese job losses are neither the end nor the beginning. It\u00e2\u20ac\u2122s been estimated that an astounding 70,000 oil-related jobs in the UK have gone since the slump in oil prices in January 2015, a figure which could nearly treble by the time oil prices start to climb again \u00e2\u20ac\u201c that\u00e2\u20ac\u2122s half the entire UK oil workforce.<\/p>\n

 
\nOil has always had cyclical periods of \u00e2\u20ac\u015bboom and bust\u00e2\u20ac\u0165 but industry experts say that the downturn in prices may persist far longer than anything we\u00e2\u20ac\u2122ve ever seen.<\/p>\n

 
\n\u00e2\u20ac\u015bThere are a number of things happening on the global stage that\u00e2\u20ac\u2122s causing the crisis \u00e2\u20ac\u201c it\u00e2\u20ac\u2122s not your typical oil bust,\u00e2\u20ac\u0165 explained Unite Scottish secretary Pat Rafferty. \u00e2\u20ac\u015bThere\u00e2\u20ac\u2122s the glut in supply that may be exacerbated by Iran coming back into the market. There\u00e2\u20ac\u2122s also the declining Chinese economy and weakening demand, among other issues.\u00e2\u20ac\u0165<\/p>\n

 
\n\u00e2\u20ac\u015bWhat this is not is a North Sea crisis \u00e2\u20ac\u201c there\u00e2\u20ac\u2122s still plenty of oil there and plenty of future potential,\u00e2\u20ac\u0165 he added. \u00e2\u20ac\u015bIt just needs the investment and support.\u00e2\u20ac\u0165<\/p>\n

 
\nStill, an analysis by industry certification body DNV GL<\/a> showed the impact of the downturn on employment has hit the North Sea the hardest.<\/p>\n

 
\nSkills crisis<\/strong><\/em>
\nDNV GL oil and gas regional director for the UK Hari Vamadevan warned that oil companies aren\u00e2\u20ac\u2122t learning the lessons from past boom and bust cycles, when the industry axed jobs to cut costs during a downturn but ultimately paid dearly afterwards with a protracted skills gap.<\/p>\n

 
\n\u00e2\u20ac\u015bAs an industry, we have taken quick, cost-cutting action, which has been particularly apparent through a raft of major job cuts over the past 12 months, and further short-term measures are expected, despite concerns over the skills drain,\u00e2\u20ac\u0165 Vamadevan said.<\/p>\n

 
\nThis is precisely why Unite has argued against slashing jobs in the North Sea \u00e2\u20ac\u201c by oil companies attempting to weather a temporary, if lengthy economic downturn through vicious cost-cutting measures, the damage could very well become permanent.<\/p>\n

 
\n\u00e2\u20ac\u015bThe skills drain is a huge concern,\u00e2\u20ac\u0165 explained Unite regional officer Tommy Campbell. \u00e2\u20ac\u015bI work with scaffolders and they\u00e2\u20ac\u2122re certified to work specifically in oil and gas. When they lose their jobs, maybe they\u00e2\u20ac\u2122ll find work on the mainland and eventually their certification runs out. They may never return, and with them will go all those valuable skills that the industry needs.\u00e2\u20ac\u0165<\/p>\n

 
\nCampbell noted that one of the ways in which skills can be retained is by job sharing instead of all-out job cuts.<\/p>\n

 
\n\u00e2\u20ac\u015bWe\u00e2\u20ac\u2122ve also suggested looking at having younger employees paired with older employees who will be phasing themselves out, so they can hand these skills to the younger workforce.\u00e2\u20ac\u0165<\/p>\n

 
\n\u00e2\u20ac\u015bBut they\u00e2\u20ac\u2122re hasn\u00e2\u20ac\u2122t been much interest among employers; they seem to be only fixated on the short-term,\u00e2\u20ac\u0165 he said. \u00e2\u20ac\u015bThat\u00e2\u20ac\u2122s why state intervention is necessary — for the future of the workforce and the future of the industry.\u00e2\u20ac\u0165<\/p>\n

 
\nHealth and safety<\/strong><\/em>
\nFor those still lucky enough to have their jobs, offshore workers face decimated terms and conditions as their employers rush to cut costs and appease shareholders \u00e2\u20ac\u201c and it could very well be risking workers\u00e2\u20ac\u2122 lives.<\/p>\n

 
\nAs oil companies seek to be as efficient as possible, cutting every possible corner means health and safety, too, is placed on the backburner.<\/p>\n

 
\nOil companies are trying to make do with less during the downturn, so many of them have switched to what\u00e2\u20ac\u2122s called a 3\/3 rota. Oil workers are forced to work for three weeks straight on twelve-hour shifts each day, followed by a three-week break.<\/p>\n

 
\nBut Campbell explained that this shift pattern is unsustainable \u00e2\u20ac\u201c and extremely dangerous.<\/p>\n

 
\n\u00e2\u20ac\u015bIf you were an ambulance service or a fire service, and you went to the Scottish parliament to ask permission for your workforce to work three weeks straight with no break, you\u00e2\u20ac\u2122d be laughed out of parliament. Why should it be any different with workers in the oil industry?\u00e2\u20ac\u0165<\/p>\n

 
\nMajor oil companies, however, deny that there is a problem, Campbell said. \u00e2\u20ac\u015bThey say \u00e2\u20ac\u0098Well there\u00e2\u20ac\u2122s no evidence that these work patterns put workers at risk\u00e2\u20ac\u2122.\u00e2\u20ac\u0165<\/p>\n

 
\n\u00e2\u20ac\u015bBut are we going to have to wait until there\u00e2\u20ac\u2122s a major incident to do something about it? We\u00e2\u20ac\u2122ve spoken to offshore medics and we\u00e2\u20ac\u2122ve heard stories that more and more workers are coming to them complaining about fatigue.\u00e2\u20ac\u0165<\/p>\n

 
\n\u00e2\u20ac\u015bThe workforce is absolutely knackered,\u00e2\u20ac\u0165 he noted. \u00e2\u20ac\u015bAnd even a 3\/3 rota is often not adhered to. Sometimes you\u00e2\u20ac\u2122ll have a chopper facing delays in picking up offshore workers at the end of the third week because of poor weather conditions.<\/p>\n

 
\n\u00e2\u20ac\u015bWorkers can agree to not work after their shift is over but of course employers encourage them to do so. Let\u00e2\u20ac\u2122s not forget, too, that many of these workers aren\u00e2\u20ac\u2122t young \u00e2\u20ac\u201c they\u00e2\u20ac\u2122ve been in the industry for 25 or 30 years.<\/p>\n

 
\n\u00e2\u20ac\u015bBut they just keep their head down and do as they\u00e2\u20ac\u2122re told because, especially at this time, they fear losing their jobs. It\u00e2\u20ac\u2122s effectively a form of blackmail.\u00e2\u20ac\u0165<\/p>\n

 
\nOne voice<\/strong><\/em><\/p>\n

 <\/p>\n

The situation may seem helpless, but as with the foundering steel industry, that doesn\u00e2\u20ac\u2122t mean nothing can be done.<\/p>\n

 
\nUnite, along with other offshore trade unions, have banded together to seek immediate solutions that will not only stem growing job losses but ensure that there is a future for oil.<\/p>\n

 
\nOn Monday (February 8), Unite, the largest offshore trade union, will join the RMT, the GMB, Balpa, and Nautilus in a Scottish TUC-coordinated press conference to speak as one voice representing hundreds of thousands of oil workers.<\/p>\n

 
\n\u00e2\u20ac\u015bThis conference is a loud and clear signal that we as a whole are working as one to show that we acknowledge the crisis in the oil industry and that we need to urgently come up with a plan,\u00e2\u20ac\u0165 explained Rafferty.<\/p>\n

 
\n\u00e2\u20ac\u015bAnd at the forefront of this plan is protecting jobs and terms and conditions as well as standing strong on health and safety standards,\u00e2\u20ac\u0165 he said.<\/p>\n

 
\nRafferty also last week called<\/a> for an urgent summit, with the aim of bringing together all interested parties, including industry, the Scottish and Westminster governments, as well as trade unions.<\/p>\n

 
\n\u00e2\u20ac\u015bWe\u00e2\u20ac\u2122ll be demanding fiscal measures from both governments to address the crisis,\u00e2\u20ac\u0165 he said. \u00e2\u20ac\u015bA number of interventions can help ease the pain as the industry weathers the storm, including tax relief.\u00e2\u20ac\u0165<\/p>\n

 
\nAt the same time, Rafferty emphasised, any measure that\u00e2\u20ac\u2122s called for must \u00e2\u20ac\u015bbe for the protection of the workforce and not to prop up oil companies\u00e2\u20ac\u2122 profit margins\u00e2\u20ac\u0165.<\/p>\n

 
\n\u00e2\u20ac\u015bLet\u00e2\u20ac\u2122s be clear \u00e2\u20ac\u201c despite the crisis, oil companies are still making money,\u00e2\u20ac\u0165 Rafferty noted. \u00e2\u20ac\u015bThey\u00e2\u20ac\u2122re far from being skint.\u00e2\u20ac\u0165<\/p>\n

 
\n\u00e2\u20ac\u015bOil companies have had tax breaks recently, but so far they have not passed on that relief to their workers, whose jobs are being slashed and whose terms and conditions are being destroyed. They\u00e2\u20ac\u2122ve got be held accountable.\u00e2\u20ac\u0165<\/p>\n

 
\nUnite assistant general secretary Tony Burke echoed the urgent need for a summit, similar to a summit held in October<\/a> to address the crisis in steel.<\/p>\n

 <\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThe offshore oil industry is going through the worst crisis ever, with the price of Brent crude going down to $30 a barrel and falling,\u00e2\u20ac\u0165 he said. \u00e2\u20ac\u015bThere\u00e2\u20ac\u2122s no evidence we\u00e2\u20ac\u2122ve seen that that figure is going to go northwards back to anywhere near $50 for quite some time. The industry\u00e2\u20ac\u2122s got to learn how to deal with this and we\u00e2\u20ac\u2122ve got bring people together. We can\u00e2\u20ac\u2122t be doing this on the basis breaking up skilled workforces.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

 <\/p>\n

“That’s the aim of the press conference on Monday — for all the trade unions to speak as one in order unite and protect the workforce at this moment of crisis.<\/p>\n

 <\/p>\n

 <\/p>\n

Stay tuned on UNITElive for updates after the offshore trade unions press conference on Monday.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

A shadow is cast over Aberdeen, as one of the most prosperous cities in the UK now bears witness to queues outside the door at food banks, formed virtually overnight.   The oil industry has been shaken to its foundations and the crisis shows no sign of abating anytime soon. The price of Brent crude […]<\/p>\n","protected":false},"author":1,"featured_media":7642,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"wps_subtitle":"Offshore trade unions join forces to confront oil crisis","_links":{"self":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/7632"}],"collection":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7632"}],"version-history":[{"count":3,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/7632\/revisions"}],"predecessor-version":[{"id":7645,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/7632\/revisions\/7645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/media\/7642"}],"wp:attachment":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}