Workplace Report September 2007

Bargaining news

Offshore deal delivers 7%

Offshore workers in the oil and gas industries are to see their pay rise by almost 7% from next month under a new agreement negotiated by general unions the GMB and Unite (Amicus section).

Applying to the 80 companies within the the Offshore Contractors’ Association (OCA), the deal will raise the average hourly rate for craft workers from £14.72 to to £15.60.

There will also be significant increases in paid time off, resulting from a recent amendment to the Working Time Regulations. Employers in the industry had maintained until recently that the regulations did not apply to the UK continental shelf, but the amendment has made it clear that they do.

The amount of paid time off will be increased gradually, but will be worth a total of four weeks (28 days) from October 2008 – reducing the maximum number of days that can be worked offshore per year to 154.

The deal is subject to a ballot of union members, which closes on 10 September. By accepting it, they will agree to withdraw any existing legal challenges relating to holiday pay and entitlement.

Recommending the deal to his members, GMB national secretary Keith Hazlewood said: “Our members have been very patient awaiting the outcome of these difficult negotiations, but the result has been worth it.–