Oil workers go on strike over 30 percent pay cuts

in Other News/World by

Roughly 400 oil worker went on a 24 hour strike at seven Royal Dutch Shell PLC oil and gas platforms in the U.K. North Sea who are employed Wood Group PLC, an oil-field services company contracted by Shell.

Workers are to receive 30% pay cuts on their wage and living allowance, the strike will last for 24 hours with more stikes coming in the following weeks. 

Shell said the company won’t lose production because the site is undergoing regular maintenance. 

From wsj.com

A Shell spokesman said the strike action was “highly regrettable” and “counterproductive.” He said the workers had a right to strike but said “structural change is needed” in the North Sea oil and gas industry, where the costs are among the highest in the world.

Oil service companies have slashed jobs across the world following the fall in oil prices to around $47 a barrel from over $100 in mid-2014.

Wood Group said it was disappointed about the strike.

“Our firm focus remains on reaching a resolution,” said Dave Stewart, Wood Group’s CEO for its eastern region business unit.

Workers choose to go on strike during maintenance when there’s no production loss to show the company they are serious, the next strike could be during production time and the company will lose millions of dollars. 

 Some say it’s a good move and some not.  Share and comment your thoughts.