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Shell braces for North Sea strike action

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Jillian Ambrose: 11 JULY 2016

Shell is bracing itself for major strike action on its North Sea platforms after talks between workers and oilfield services company Wood Group broke down ahead of a union ballot.

Wood Group’s oil workers will vote on whether to take action over tougher offshore working schedules and lower pay, in what could be the first wave of strikes for the North Sea in a generation.

Trade unions Unite and RMT are balloting 200 of around 450 oil workers working across Shell’s platforms in the Brent oilfield, and on Wednesday will decide whether almost half the workforce will down tools.

The looming strike threat comes after months of tense negotiations between the Aberdeen-based services group and the unions, which led to a breakdown of mediation talks with dispute resolution group Acas on Friday.

Union representatives say that workers are frustrated at being paid less while being asked to work longer hours across more demanding shift patterns.

They are also concerned that the workers’ safety could be under threat if they are driven to fatigue and important maintenance work suffers.

A Shell spokesman said the company is monitoring the situation and hopes Wood Group can resolve its staffing issues.

Wood Group, which provides services to major oil projects, said it is “extremely disappointed” that the “extensive consultation” with its offshore workers has failed to result in an agreement.

The services giant vehemently denies breaching the industry standards agreed with unions at the start of the year and says many of its workers are still paid well above the agreed rates.

Oilfield service companies have come under intense pressure to reduce their operating costs in order to offer lower fees to cash-strapped oil majors which have been hard-hit by the oil market crash.

Wood Group says that its priority is to safeguard North Sea jobs in the long-term by remaining competitive.

“We remain fully committed to continuing to engage with our employees and the unions going forward to meet our mutual goal of sustaining these jobs in the North Sea, now and in the future,” the company said.

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