More than 1,000 employees in north-east Scotland face redundancy unless they accept significant pension cuts, according to internal documents and workers speaking anonymously.
Baker Hughes, a major employer in the Aberdeen oil and gas sector, has issued formal advance redundancy notices affecting over 4,500 employees.
The company says the redundancies are linked to a proposed change in employees’ terms and conditions of employment, specifically pension contributions.
It is proposing to reduce employer pension contributions by up to 25% for nearly 4,600 active members of its UK pension savings plan, according to one worker.
This would apply to all current employees, except those who joined after 1 August 2024, who are already enrolled in a lower-contribution scheme.
The changes would come into effect from 1 January 2026.
Staff have been informed that if agreement is not reached, Baker Hughes may carry out a process known as “dismiss and re-engage” – commonly called fire-and-rehire – where employees are made redundant and rehired on new, less favourable terms.
This practice, though currently legal, is set to be severely restricted under upcoming UK legislation.
“Essentially the business is looking to impose a 25% reduction in pension contributions under an excessive timeline, which currently is legal, but looks to be timed just before the amendment of the employee rights bill that would outlaw this practice,” said a source close to the company.
They asked to remain anonymous due to fear of reprisals, but said, “too often oil and gas workers of the UK are forgotten about, and need to be vocal”.
Local impact and sites affected
Aberdeen serves as Baker Hughes’ UK headquarters for operations across Europe, the Caspian, and Norway. Key local sites include Montrose, Portlethen, Peterhead, and Dyce.
The pension cuts plan comes just weeks after Baker Hughes completed a £900 million buy-in deal, securing pensions for over 7,000 retired and deferred members across three legacy schemes.
A Baker Hughes spokesperson said: “Baker Hughes regularly reviews its global benefit offerings to ensure that we remain an employer of choice, while also maintaining sustainable business practices.
“In the wake of a review that began in 2024, the company recently communicated an upcoming proposed change in pension plans which would align with the current offering to new hires in the UK from 1st August 2024.
“These plans would keep Baker Hughes within the top 25% of employers in the UK in terms of pension contributions.
“The HR1 form is statutorily required by the UK government. It was part of a broader communications package to our employees. This communications package provided additional context and background on this proposal.”
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