Energy service firm Sparrows Group has revealed its plans to withdraw from the UK representative body for offshore oil and gas contractors.
Sparrows said its diversification into renewables and onshore industrial sectors meant the Offshore Contractors Association (OCA) was no longer the right fit for the company.
The firm manages about 400 offshore employees from Aberdeen and has a total north-east headcount of about 1,000.
Sparrows intends to officially leave by the end of 2019.
The company said its “offshore employee forum” was a better platform for speaking to larger numbers of its employees face-to-face.
But Sparrows said trade unions would be welcome at its forum meetings and vowed to honour the terms and conditions secured for workers through the OCA agreement.
Sparrows chief executive Stewart Mitchell said: “Our successful diversification outside the oil and gas industry means the OCA is no longer reflective of our business model.
“As we continue to change the shape of Sparrows it’s crucial that our people are not constrained by sector associations and have opportunities to work across all the industries we operate in.
“In leaving the OCA we have made the decision to formalise our offshore employee forum with the aim of having more direct dialogue with a greater number of employees.
“By communicating directly with a broad section of our people we can focus on what’s important to Sparrows’ workforce.”
Mr Mitchell added: “We realise the importance of trade union engagement and we hope to further develop our existing relationships by welcoming them to our forum meetings.
“We are proud of what the OCA has achieved in recent years which has resulted in a more stable industrial relations environment and consequently a more sustainable oil and gas sector in the North Sea.
“We remain committed to the implementation of the terms already agreed during our membership.”
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