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.
- Inflation Reduction Act Could Result In More Energy Service Inflation
- US GOM Methane Emissions Much Higher Than Those In Permian
- Equinor Proceeding With Large-Scale Hydrogen Project In UK
- Jadestone Shuts Down Montara FPSO Over Tank Issues
- Buffett Boosts Oxy Stake
- Oil Market Watcher Flags Inflation Reduction Act
- Industry Body Sets Out 7 Key Asks for Future UK PM
- Aramco Profit Surges to Another Record
- ADNOC Awards $1.17B Deal For 13 Jack-Up Barges
- Russia Gas Transit Payment Goes Through After Glitch
- 88 Energy Makes 1 Billion Barrel Oil Announcement
- Oil Outages in Gulf of Mexico Straining Tight Market
- Goldman Sees USA Gasoline Prices Climbing Back to $5
- Brent-WTI Oil Price Spread at Highest Point Since 2014
- Pioneer CEO Says Tax Bill May Crush USA Mom-N-Pop Oil Drillers
- Big Oil To Go Deep Into Trillion-Dollar Offshore Wind Industry
- Cheap USA Oil Undercuts Middle Eastern Crude
- Oil Price Rally Explained
- Energy Industry Opposes Inflation Reduction Act
- Shell Finds Gas Off Colombian Caribbean Coast
- 88 Energy Makes 1 Billion Barrel Oil Announcement
- Over A Quarter Of Turbines Installed On Formosa 2 Wind Farm
- Saudis to Hike Oil Price to Record
- Pantheon Hits Multiple Oil Reservoirs At Second Alkaid Well
- Analyst Gives Year-End Oil Price Warning
- Guyana Just Keeps On Giving As Exxon Makes Two More Discoveries
- American Drivers Grab $3.11-a-Gallon Gas in Mexico
- Guyana Going Big League With O&G Revenues To Pass $1 Bn In 2022
- Brage Well Comes Up Dry
- U.S. Crude Oil Exports Add $161 Bn To GDP Since Ban Lift