UK union Unite announced, in a statement sent to Rigzone this week, that over 400 offshore members employed by Bilfinger UK Limited “have supported taking strike action in an escalating dispute over pensions”.
“A majority of Bilfinger workers have emphatically backed strike action in a fight to secure a fairer pension deal,” Unite said in the statement.
“Unite members are demanding that Bilfinger move to a gross earnings pension scheme like many other private sector and offshore companies because workers are losing out on thousands of pounds in pension contributions due to their pattern of pay being weekly,” it added.
Unite noted in the statement that the majority of Bilfinger workers are enrolled in a statutory minimum workplace pension scheme “where the company pays a maximum three percent of ‘qualifying earnings’ contribution”.
“The qualifying earnings income is between GBP 6,240 [$8,322] and GBP 50,270 [$67,060]. Anything above or below that does not factor in pension contributions. It means Bilfinger’s annual pension contribution is capped at GBP 1,320.90 [$1,762.10] per year irrespective of income,” Unite said.
The union estimated in the statement that around GBP 2,254 [$3,006] is being lost every year in employer pension contributions when compared with a gross salary pension scheme for a worker earning GBP 59,580.36 [$79,486.58].
“If Bilfinger fails to act on the pensions issue then strikes will be called in the coming weeks”, Unite warned in the statement, which highlighted that “a number of oil and gas operators are set to be hit by any industrial action involving Bilfinger offshore members including BP, CNR, Ineos, Ithaca, and TAQA”.
According to the statement, the following assets would be impacted by industrial action:
|
Operator |
Asset |
|
BP |
Andrew |
|
BP |
Clair |
|
BP |
Clair Ridge |
|
BP |
ETAP |
|
BP |
Glen Lyon |
|
BP |
Mungo |
|
CNR |
Ninian Central |
|
CNR |
Ninian South |
|
CNR |
Tiffany |
|
INEOS |
Unity |
|
Ithaca |
Alba FSU |
|
Ithaca |
Alba North |
|
Ithaca |
Captain FPSO |
|
Ithaca |
Captain WPP |
|
Ithaca |
FPF1 |
|
Ithaca |
Safe Caledonia |
|
TAQA |
Brae Alpha |
|
TAQA |
Cormorant Alpha |
|
TAQA |
Harding |
“Bilfinger is disadvantaging hundreds of Unite members by paying lower pension contributions to workers based simply on how they are paid,” Unite General Secretary Sharon Graham said in the statement.
“Unite members are losing out on thousands of pounds every year in company pension contributions compared with other workers, which is completely unacceptable. We will back our Bilfinger members every step of the way in their fight to secure a just and fair pension settlement,” Graham added.
Unite Industrial Officer Paula Buchan said in the statement, “Unite’s Bilfinger membership are determined to secure a fair pension deal”.
“Hundreds of workers who do equally highly skilled and expert work in the offshore sector are being treated unfairly when compared with other colleagues employed by the company who are paid on a salary basis,” he added.
“Dozens of offshore installations will now be hit by widespread disruption due to workers being treated in an unacceptable and unfair way. The blame for that strike action lies squarely at the door of Bilfinger HQ,” he continued.
Rigzone has contacted Bilfinger, BP, CNR, INEOS, Ithaca, and TAQA for comment on Unite’s statement. Ineos declined to comment. Bilfinger, BP, CNR, Ithaca, and TAQA have not responded to Rigzone at the time of writing.
The Clair field is the largest oilfield on the UK Continental Shelf, according to BP’s website, which states production from the field began in 2005 through the Clair Phase One platform. This was the first fixed platform west of Shetland, BP’s site highlights.
Clair Ridge is the second phase of development, BP’s site states, adding that ”the bridge-linked platforms, which delivered first oil in November 2018, are designed to recover an estimated 640 million barrels of oil”.
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