Wood Group Announces Pay Cuts
In response to cost and efficiency challenges affecting the UK North Sea oil & gas sector, Wood Group PSN (WGPSN) has today announced plans to reduce the rates paid to its UK-based limited company offshore and onshore contract workers.
In addition, salaries will be frozen for the majority of UK-based Wood Group onshore employees.
An up to 10 per cent decrease in UK offshore and onshore contractors’ rates will be effective from 31 January 2015.
Dave Stewart, UK managing director of WGPSN explained: “These measures have not been taken lightly, but we believe they are required in light of the cost and efficiency challenges affecting the UK North Sea oil and gas sector, exacerbated by the fall in oil prices. We understand the need to contribute to creating a sustainable industry and are committed to playing our part to the long-term changes needed.
“Safety and assurance is our top priority and integral to how we do business. Our focus is on assuring the safety of our people and everything we design, construct, operate and maintain, while taking measures to improve efficiency and reduce cost for our customers and safeguarding the future of our industry.
“We are committed to undertaking proactive reviews of our contractor rates on a regular basis to ensure competitiveness within the marketplace.
“Our customers are focused on prioritising their spend and according to Oil & Gas UK’s latest activity survey, production in the sector dipped eight per cent last year to an average of 1.43 Million Barrels of Oil Equivalent (MMboe) per day. Escalating costs at any level has a domino effect on any mature sector and we want to help the long-term health of the industry.”
WGPSN said that it is keen to retain people and increase its staff ratio in the UK, so there will be opportunities for contractors to transfer to WGPSN staff positions.
Wood Group employs approximately 12,000 people onshore and offshore in the UK.