Union bosses have called for an end to what they branded “slash and burn” tactics in the oil and gas industry.
They made the plea after offshore giant BP’s announcement earlier this week 300 jobs would go.
The price of Brent crude has dropped to a six-year low, fuelling fears of widespread redundancies.
Yesterday, union representatives met industry body Oil and Gas UK to discuss how best to safeguard the future of the vital sector.
Speaking after the meeting, Grahame Smith, general secretary of the Scottish Trades Union Congress (STUC), said the industry had recognised a radical change was needed in the way it operated.
He said: “I think there is an appreciation from the industry at the issues we are raising.
“I think they have recognised that the way some of the decisions have been taken, particularly those that have been taken unilaterally, has not been helpful.
“Ultimately it’s in the short, and long-term interests of the industry to find a way forward together and in an environment where industry was not in danger of losing skilled workers and creating a de-motivated workforce, so that when the situation does improve, we’re not faced with a skills shortage that may hamper the industry.
“We have been here before with the price at this sort of level and thanks to the slash and burn tactics of some in the industry we have ended up in a situation where there has been a shortage when things have improved.
“The industry was already suffering from a skills shortage prior to the decline in the value of oil which needed to be resolved but now it has to be dealt with in the context of these declining prices.”
As well as Mr Smith, representatives from the RMT and Unite unions were also present at the meeting along with Oil and Gas UK operations director, Oonagh Werngren.
Ms Werngren described the meeting as “constructive” but added there could be some “difficult calls” to make in the future.
She said: “We heard from the unions about the impact of some of the recent announcements and how they affect the workforce and we listened carefully to their concerns and agreed to meet again as soon as possible to discuss how we could work together to influence government and industry to ensure there is a long-term, sustainable future for the North Sea.
“I think we need to go and talk to out members about some of their concerns that have been raised to understand more about what our members’ intentions are and, at the same time, we will continue to lobby government to ensure there is a tax cut.
“We have overcome difficult challenges in the past but there are some differences this time – the basin is mature, there has been significant rising costs and we need to ensure that we have a sustainable basis for the future.
“There could be some difficult calls that have to be made here but this industry is of significant importance to the UK. It is a major supplier of energy today and will continue to be in the future and it’s vitally important that we ensure it’s set up for the long term.
“That means the unions, the industry and the Treasury all taking important steps to address the issues that exist today.”
Further discussions are expected to take place next week.
Recommended for you
