Divers come up for pay rise
WORKERS, DEC 2006 ISSUE
On the tenth day of their solid strike last month – and quite prepared for lengthy action – divers in the North Sea oil and gas industry have settled their dispute with the seven companies involved. They have achieved a greatly improved offer after a two-stage struggle, the first of which was reported in the November issue of Workers.
Rejecting the employers' second offer recommended by their union, they have through their strike won 25 per cent rises in all rates, with further increases over the 3-year deal period. Of nearly 1,000 RMT union members out, 80 per cent voted and only 16 per cent were against. With better collective bargaining procedures achieved as well, the divers will aim for further improvements to their conditions. For a start, bank holiday leave has been doubled to eight days.
After years of pay erosion the action will help to re-establish the British offshore industry as a benchmark for workers' standards worldwide. It has pioneered many technical advances in work that involves welding and other maintenance on pipelines, well and platform structures at over 300 feet deep in freezing conditions, with lengthy periods in pressurised diving chambers. The job entails ongoing training and achievement of safety qualifications.
The employers include KD Marine, Well-Ops, Integrated Subsea Services and SubSea 7 – all signatories to this new Offshore Diving Industry Agreement which will be in place until the beginning of November 2009.
The strike happened to coincide with the conference, in Aberdeen, of the UK Oil Operators Association, where employers considering the soaring costs of exploiting the remaining North Sea oil and gas feared skills shortages and newly-inspired claims from other North Sea workers. They pointed to the solution of moving towards "diverless intervention" – automated techniques being tried in the Norwegian sector of the industry.
All this comes at the end of an era for the British economy – an end to its surplus on trade in oil and the beginning of a downward trend in value and volume of oil exports for the first time since the late 1970s. Investment is not increasing, and by 2010 production could fall to half of what it was in 2000.
But new gas fields are being discovered, albeit in increasingly difficult conditions to exploit: the global gas company BG Group – with US operator ConocoPhillips holding an interest of over 36 per cent – has secured five new discoveries in the past year. Its latest, one of the biggest finds in a decade, was announced last month. With recoverable reserves put at over 250 million barrels, it is 200 miles east of Aberdeen. The resultant gas stream is destined for the Norsea oil terminal at Teesside.