“In recent years, we haven`t made stupid demands, we`ve just tried to keep people`s heads above inflation rates so they always bring the same money in their pockets at home,” Knox said. According to a December OCA news release, basic hourly rates for a typical Class B employee will increase to $20.65 in January and $21.48 in January 2020. “Sparrows is participating in the OCA`s salary discussions in 2018, but they have yet to comply with the 2017 agreement. The Wood Group, which was involved in last year`s strike and the current vote under the OCA agreement, reported a 22.8% drop in pre-tax profit in 2015 to $363 million between 2015 and 2016. One of his managers reported a base salary of $US 600,000 at home, up from $468,000 the previous year, with a bonus of $320,000. Pat Rafferty, Scotland`s secretary of Unite, said: “The OCA`s decision to denounce the current industry-wide agreement is a massive setback in the offshore sector. It will threaten security, employment, pay and trivialization. Unite will consult with our members and we will take all necessary measures to maintain their terms and conditions. All options are on the table. We also requested a delay in any decision on the sending time due to the Covid 19 crisis, but the OCA directly refused. This is a shameful move on the part of offshore suppliers, which will lead to greater instability and uncertainty in this sector at the worst possible time.
A spokeswoman for the Sparrows Group said: “We are committed to ensuring that our offshore staff receive the agreed salary rating for 2017-2018, provided our customers agree to fund it in accordance with existing contractual agreements. In September, the Association of Offshore Contractors (OCA) agreed with the unions on the implementation of a 2% increase, which dates back to last April. With oil currently trading at about $50 per barrel, the industry is significantly less lucrative than its dizzying bloom of a few years ago, which exceeded $100 per barrel. But whether this justifies the cuts is of paramount importance for wage differences. Unite, the largest offshore union, launched the “Keep the North Sea Safe – Cuts Cost Lives” campaign in March in response to the OcA and announced the dismantling of a collective agreement covering the terms of approximately 7,000 workers. The agreement covers a peak of 10,000 workers during the summer fallow. Eight major oil companies are part of the OCA companies, including Aker Solutions, Altrad, Brand, Muilhlhan, Petrofac, Stork, Wood Group and Worley. Unite Scotland reacted angrily today (11 May) to the failure of talks with trade unions and the Part of the Association of Offshore Contractors (OCA). The union said “all options are on the table” to protect the existing industry-wide agreement.
Oil prices are high everywhere, with different estimates of the average income of a British offshore worker generally over $50,000. Many problems in Norway have been met with increased participation by international players, knox said, who have come and put pressure on existing wage agreements. Incoming investors see it as an easy target in the event of a cost-cutting axis, he added.