The oil industry in Scotland is going through turbulent times. The continuing low oil prices are threatening investment and blighting confidence in a sector which has seen prosperity through what were some pretty tough years for the rest of the economy.
For months now we’ve been hearing of how the price of a barrel of oil was vastly over-projected by Scotland’s Nationalist Government in the run up to last year’s referendum. Today, the price is barely half of what the SNP based its separation forecasts on.
That same industry however, has learned over the past forty years to survive through a crisis and rise again when the market turns around, and that is where we find ourselves once again.
Historically, each of these periodic down-turns is met with a substantial programme of cost-cutting but, clearly acknowledging its troubled past, has always put safety first.
Changes currently being implemented are clearly designed to achieve stability in this tough new economic environment with oil production rising in the last quarter as production costs are forced down.
Trade unions have traditionally had only a limited presence in the offshore industry and even now, do not speak for a majority of those who rely on it for the livelihoods.
Members of GMB and Unite need to understand that their futures are directly linked to the success of the North Sea oil and gas industry in achieving a margin in the face of lower prices.
Given the current economic climate they should support the package offered by the Offshore Contractors Association and end this dispute.
With the unpredictability of oil prices going forward, it is hard to imagine a worse time for this dispute to take hold; this is exactly the wrong time for the unions to start meddling with their members future. Neither does the industry need another kick when it is already down.
This is a time for leadership. Trade union leaders need to show real vision and prevent this dispute from going ahead. They will never be forgiven for the damage they may be about to do.
A little leadership from the Scottish Government would go a long way too. They need to be stepping in now and doing all they can to relieve the situation before it escalates out of control and we have the kind of full scale industrial action which no one wants.
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