Wood Group PSN slashes contractor rates by 9%

Oil and gas services giant Wood Group today said its PSN division was slashing pay rates for contractors.

Wood Group PSN's James Crawford said the decision had not been 'taken lightly'

The Aberdeen-based firm said about a third of its UK-based limited company contractor – equivalent to about 200 people – will see their rates cut by an average of 9 per cent, “in line with competitive market rates”.

Wood Group said the move was in response to “continuing cost and efficiency challenges affecting the UK’s North Sea oil and gas sector”.

James Crawford, managing director of Wood Group PSN in the UK and Africa, said: “This is not a decision we have taken lightly, but we believe it is the right one to proactively meet the continuing cost and resourcing challenges affecting the UK North Sea oil and gas sector. Our focus and commitment remains on contributing to the industry’s long-term sustainability.

“This adjustment to the rates we pay our UK contractors ensures we continue to be competitive within the marketplace. We highly value our contractors and this measure will allow us to sustain our relationship with these talented people, whilst taking appropriate measures to improve efficiency and reduce cost for our customers.”

The latest reduction to contractors’ rates follows a 10 per cent cut to UK onshore contractors’ rates made in May 2014, and a further decrease of up to 10 per cent made by Wood Group PSN in December of the same year.

More than 7,500 people work for the division in the UK, including about 600 contractors.