Wood Group PSN has taken another swing of the axe to contractor rates in response to continuing cost challenges affecting the UK North Sea oil & gas sector.
The cuts will see an average of 9% taken off rates, affecting around 200 North Sea workers.
This latest adjustment, revealed today, comes after WGPSN cut 10% from the pay of UK onshore contractors in May, 2014 and a further up to 10% decrease in UK contractors’ rates in December of that year.
James Crawford, managing director of WGPSN in the UK and Africa, said: “This is not a decision we have taken lightly, but we believe it is the right one to proactively meet the continuing cost and resourcing challenges affecting the UK North Sea oil and gas sector. Our focus and commitment remains on contributing to the industry’s long-term sustainability.
“This adjustment to the rates we pay our UK contractors ensures we continue to be competitive within the marketplace. We highly value our contractors and this measure will allow us to sustain our relationship with these talented people, whilst taking appropriate measures to improve efficiency and reduce cost for our customers.”
More than 7,500 people work for WGPSN in the UK, including approximately 600 contractors. The cuts affect up to a third of these.
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