The global slump in oil demand and the fall in the price of a barrel is causing significant economic problems for the offshore oil and gas sector.
The trade union, Unite Scotland has launched an extensive campaign which aims to protect jobs in the volatile offshore industry.
“A crisis behind a crisis” published by the Offshore Co-ordinating Group (OCG) highlighted that upwards of 3,500 workers are immediately at risk through redundancies or furloughing by September 2020.
The report stated:
We question whether the industry can be sustained with these dramatic fluctuations in activity driven by the major oil companies pulling the plug the moment things get tough. As a nation exploiting the remaining oil and gas reserves from a mature basin we cannot treat a highly skilled workforce as if it were a tap that can be turned on and off as and when needed. Crisis Behind The Crisis
The report was followed by warnings from the sector’s trade body, Oil and Gas UK (OGUK), that over the next 18 months up to 30,000 jobs could be lost.
We will never get to be the energy transition leader/centre of excellence for decommissioning if the current workforce is lost. We need the ability to hire/develop/progress the workforce to take us into the next phase of energy production.
The campaign will involve the distribution of thousands of electronic postcards to union members so they can make direct contact with MPs and MSPs to gain support for several key measures which include:
- Direct state investment in the sector via low cost loans to operators. This will make the Government “equity partners” in any future operations;
- OGUK and the Government to at once honour and speed up their “Roadmap to 2035” commitment to maintain North Sea employment at 135,000 jobs; and
- Proper collective bargaining with unions now and when transitioning to greener industries (including a meaningful trade union voice in relation to the introduction of New Tech and Automation).
The campaign comes on the back of the Offshore Contractors Association (OCA) serving notice to dismantle a collective agreement covering the terms and conditions of around 7,000 offshore workers. The agreement covers a peak of 10,000 workers during the summer shutdown. Eight major oil companies are part of the OCA companies including Aker Solutions, Altrad, Brand, Muilhlhan, Petrofac, Stork, Wood Group and Worley.
Pat Rafferty, Unite Scottish Secretary, said:
“Unite has launched the Save Off-Shore jobs campaign amid the crisis currently facing the oil and gas sector. Nobody should be under any illusions that a potential catastrophe is facing tens of thousands of workers over the coming 18 months unless swift government action occurs to stabilise the sector.
“As the largest trade union representing offshore workers our campaign will be driven by thousands of Unite members who will directly take our demands to members of parliament both at Holyrood and Westminster through electronic postcards.
“All politicians will be judged on how they can support the livelihood of our members as action is required now.”