UK Contractors, Workers Reach 'Landmark' Deal (Update)
(Updates list of signatories)
Unions representing many UK offshore workers have negotiated with contractors a new deal for collective bargaining, according to a joint statement by major trade unions Unite, GMB and RMT February 4.
The Energy Services Agreement (ESA) has the support of the industry body representing contractors and operators, Oil & Gas UK (OGUK) and it is intended to supersede the Offshore Contractors Partnership Agreement, which expired at the end of 2020.
The aim is to limit the effects on workers of the boom and bust nature of the upstream industry – such as ruthless rehiring on lower terms and conditions or contract cancellations – when oil and gas prices crash. This has happened a few times since 2014.
The unions said 13 major contractors from the offshore energy sector supply chain have confirmed they will sign up to the deal with the three trade unions. And for the first time in the sector, the agreement is being supported by the majority of operators across the sector, the unions said.
In a joint statement the unions said: "We will now consult with our members around the details and recommend that they support the agreement. The collaborative working of the trade unions and industry is an illustration of what is required to deliver a just and green recovery for workers and the UK energy supply chain. What we want to see now is government support for this exemplar in collaboration."
The agreement will also have the flexibility to bring in more companies going forward. Stability, sustainability and security of employment for the sector are critical and this deal will help deliver that, they said.
Unite said: "After a year of difficult negotiations in which Unite and the other offshore trade unions have done everything possible to get a new offshore collective agreement, talks have ended with an agreement we can recommend to members. The new ESA will give our members offshore a collective agreement that we can use to protect and improve their terms and conditions going forward.”
OGUK said a "survey about the newly created ESA, which will set conditions for a large proportion of the UK’s offshore workforce, has been issued to union members for their feedback and support. Reaching this landmark is the result of a truly collaborative approach by all parties who share an ambition to promote a stable, fair, and sustainable operating environment in the UK North Sea, particularly as we focus on our journey towards economic and green recovery in line with Roadmap 2035.”
With contractor Stork signing the agreement, there are now 14 signatories as of February 5. The others are: Aker, Altera, Brand, Kaefer, Muehlhan, Navitas, ODE, Oleochem, Petrofac, Ponticelli, Semco, Wood and Worley.