A North Sea employer’s body has dismissed a possible strike threat by unions as “premature”.
Talks between the Unite and GMB unions and the Offshore Contractors Association (OCA), which represents employers, broke down last Friday over proposed changes to rotations and holiday entitlement.
About 2,500 contractors will now be balloted on a range of responses which could even result in them downing tools.
However, Bill Murray, chief executive for the OCA, has hit back at the unions saying the North Sea was going through “a challenging time” and savings were needed until the oil price picks up again.
Mr Murray said: “For some time we have experienced unsustainable levels of cost inflation and whilst recognition of the need to reduce this is not new, the dramatic fall in the price of oil has accelerated the need to address this.
“The industry is now facing a particular dilemma where operators are looking to reduce costs promptly, especially for those with operations where costs are outstripping revenue.
“The need for productivity enhancements and efficient working is well understood by the industry, and was highlighted to union negotiators in talks in December.
“These talks are ongoing. Further meetings between OCA, Unite and GMB are scheduled to commence on February 25.”
Mr Murray added: “The failure to agree on Friday concerns a particular issue going through our disputes procedure in support of one of our member companies who have been compelled at short notice to change rota pattern because the operator of the installation on which they are working has switched to a 3on/3off rota pattern.
“Unite have complained that there was insufficient consultation on the change. Talk of strike action is premature.”
The comments come after another union, the RMT, promised to “stand shoulder to shoulder” with GMB and Unite members.
In a visit to Aberdeen yesterday First Minister Nicola Sturgeon called for the UK Government to introduce an “exploration tax credit” to encourage more investment in the North Sea.
Speaking at the headquaters of Altens firm Pipelines 2 Data she said: “I believe that North Sea oil is a fantastic asset for Scotland and will continue to be so for decades to come.
“There are up to 24 billion barrels of oil and gas equivalent remaining, and it is essential that we have a stable and proportionate fiscal regime which encourages the investment, innovation and exploration required.”