GMB Union Calls for Strike Action in UK North Sea
GMB announced Thursday that a strike ballot will go ahead after talks failed to resolve a dispute over changes to terms for offshore workers in UK waters.
The union, along with Unite officials, held talks Wednesday with the Offshore Contractors' Association about changes to employment conditions for workers covered by the Offshore Contract Agreement, including changes to offshore workers' shift rotations.
GMB National Officer David Hulse commented in a union statement:
"We did make some progress… but sadly not enough to enable us to go back to members with proposals to resolve this dispute. We will now have to proceed with organizing an official ballot for industrial action as the members asked us to do in a consultative ballot earlier this year.
"We will concentrate now on making the necessary arrangements to enable us to go ahead with EBRS [Electoral Ballot Reform Society] for independent ballot for action. We remain available for talks should the employers want to pull back from going ahead with the unilateral changes to working practices that has provoked this dispute."
Bill Murray, chief executive of the Offshore Contractors' Association, which represents the offshore industry, responded:
"We are extremely disappointed by today's decision by trade union officials to go to an industrial ballot. The industry as a whole recognizes the need to make efficiencies and increase productivity in order to extend the life of the UK North Sea and maintain jobs in the sector. The offer we put on the table today – worth between an extra GBP 1,600 [$2,500] and GBP 8,000 [$12,500] per annum per individual – can only be paid for through productivity increases."
"In its World Economic Outlook the International Monetary Fund highlighted that the UK has the highest operating costs of any oil-producing country in the world. Even as the barrel price recovers there are other parts of the world that will be better placed to take advantage of this if we don't manage our costs.
"Changes to equal time shift rotation are designed to reduce handovers and logistics costs and are not new to the North Sea. Any productivity changes required will be subject to change management and risk assessment and the unions have been offered the opportunity to participate in this."
"With inflation at an all-time low today's offer outweighs wage increases in other sectors. Strike action will only serve to make investment in the North Sea less attractive and jeopardize the long-term future of the industry."
Following the news, energy industry body Oil & Gas UK was hopeful that both sides could reach an agreement.
"Oil & Gas UK is deeply disappointed to learn that union officials have today decided to go to strike ballot. The door is still open to finding an agreement, and it is our hope is that both sides can reach an understanding that will safeguard the long term future of our industry,” an Oil & Gas UK spokesperson said in a statement.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- These Factors Helped Brent Oil Price Break Above $85
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Gaz System to Acquire Gas Storage Poland
- Subsea7 Secures Contract to Service Woodside's Trion
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- EIA Boosts USA Crude Oil Production Forecasts
- TotalEnergies to Acquire TLCS Eyeing Bayou Bend CCS Project
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension