Wood Group has launched a new consultation period as it looks to make redundancies to its team dedicated to Shell’s Brent field.
A letter obtained by Energy Voice states the company plans to cut back its workforce and review the pay and benefit terms for its existing employees. The changes are due to come into effect in June.
In a letter to staff, the company’s Shell ISC business manager Stuart Creaney, said: “Previously in communication from Dave Stewart, managing director of WGPSN, he talked about how a decline in production, increased costs and reduced production efficiency will further weaken the importance of the North Sea and its overall competitiveness.
“These precarious market conditions, which are evident as a result of uncertain oil and gas prices, and feedback from our customers have meant that WGPSN was required to assess financial measures to enable the company to compete successfully in the market place.
“WGPSN reviewed any supplementary payments and benefits made above OCPA (Offshore Contractors Partnership Agreement) and determined that these payments are unaligned with current and predicted market conditions.
“As a consequence any supplementary payments and benefits made above OCPA are proposed to be removed with effect from June 18 2016.
“For disciplines not recognised under OCPA we propose to align your salary, or rate, to a sustainable market rate level and other allowances or benefits will be aligned with OCPA.
“In addition, as we continue with decommissioning across the Brent field, including the removal of Brent Delta, it is proposed that there will be a reduction of resources required to support the planned workscope delivery.
“As a result, this places your position at risk of redundancy.”
The letter goes on to say a consultation process began on April 19th and will continue for 45 day period.
Trade unions have been informed of the move and are in consultation with Wood Group.
Wood Group was unavailable for comment.