Unite Scotland as part of the Offshore Co-ordinating Group (OCG)
have today (27 April) jointly launched a report
titled “A crisis behind a
crisis” highlighting the major issues facing the oil
and gas sector due to COVID-19 and the low price of oil. The OCG
involves Unite, GMB, RMT, Nautilus International, Balpa, and
Prospect trade unions.
With the price of oil hovering just over $20 a barrel in
conjunction with the global pandemic, the
report estimates that upwards of 3,500 workers could be
displaced by September 2020. This time last year the price of
oil was over $70 a barrel. Most of the drilling sector
workers have been told it will be 2022 before there is any upturn
in activity. In addition, the Subsea sector is seeing
contracts ended and vessels being tied up.
The report while welcoming the UK Government Job Retention Scheme
highlights that it is a ‘short term solution’ and the ‘best way’
to invest tax payers’ contributions is to directly invest in the
sector. The report suggests that this could be achieved by
government being ‘equity partners’ through providing low cost
loans to operators, and for the UK Government to pull licences
from those operators who are not prepared to take part in
such a scheme. The report further demands that companies
working in the sector should support the Scottish Government’s
Fair Work agenda and commit to engaging with the appropriate
trade unions for collective bargaining purposes.
Unite’s John Boland, Vice Chair of the OCG,
said: ”Unite through the Offshore Coordinating
Group (OCG) are calling for an urgent summit meeting with
Westminster Ministers to address the unfolding crisis across the
offshore energy sector. The OCG report 'A crisis behind a crisis'
sets out the concerns of the trade unions in respect of the
immediate impact on oil and gas activities. It also points to the
effect this crisis will have on government objectives for the
wider energy strategy and the economy.”
“The trade unions are clear that the actions of the
industry right now risk the government energy objectives and will
severely damage the UK economy, and that cannot be allowed to
happen. We are calling for an immediate intervention to halt the
“carnage” which is occurring in terms of jobs and to ensure a
Just Transition to a carbon neutral state can be
achieved.”
A copy of the report can be made on request to John Boland
(john.boland@unitetheunion.org)
or Andrew Brady (Andrew.brady@unitetheunion.org).
