Unions call for government intervention to protect North Sea energy sector jobs

The UK government is “closely monitoring” the North Sea energy sector after unions warned the industry was in crisis following a spate of lay-offs in its supply chain in recent weeks.

Aberdeen is feeling the effects of lay-offs across the North Sea sector supply chain. Picture: Jeff J Mitchell/Getty

Firms have been scaling back their operations over the past month as the economy slows due to the on-going pandemic lock down.

Norway-based Archer Drillers revealed plans last week to axe more than 130 jobs from its North Sea operation.

Unite Scotland claimed the firm made the decision despite repeated efforts to convince them to use the UK government Job Retention Scheme to furlough the workers. Archer insisted furloughing was not an option due to the drop-off in demand in the oil sector.

Jake Molloy, chairman of the Offshore Coordinating Group, a coalition of trade unions, urged the UK government to intervene and “halt the carnage”.

Molloy told Energy Voice that well over 1,000 drilling jobs were now at risk, along with several hundred posts at engineering contractors liked to the North Sea industry.

He added that the offshore sector was an industrial crisis hidden from view by the coronavirus pandemic.

“This industry cannot be sustained with these dramatic fluctuations in activity, driven by the major oil companies pulling the plug the moment things get a bit tough,” he said.

When asked if it would consider state intervention in the sector, a Treasury spokeswoman told Scotland on Sunday that it was already taking unprecedented action to support businesses. She added: “We are closely monitoring developments and are in regular contact with the Oil and Gas Authority and the wider sector.”

A Scottish Government spokesman said: “We continue to work closely with the UK Government and Oil and Gas UK to assess the gaps within the existing support packages that have been announced.

“We have regular engagement with the energy sector, BEIS and the OGA on the industry’s challenge in response to Covid-19 and the longer term issues facing the sector as a result of the low oil and gas price.

“The Energy Minister has held a number of strategic engagements with the 
sector since the onset of Covid-19, including with Oil and Gas UK, the Oil and Gas Authority and the offshore unions.

“Most recently the minister has spoken with the UK Energy Minister Kwasi Kwarteng where it was agreed that regular discussions should take place, and addressed the Oil and Gas UK Operator and Contractor Council virtual meetings this week.”