BP Revoke Contractor Pay Cut Plan
Oil Giant BP announced yesterday that it has withdrawn its proposal to cut the pay rates of some contractors in an effort to reduce costs, following opposition from workers. Oil giant BP had considered axing automatic payments for contractors’ overtime and night-shift duties.
The Unite union had threatened possible industrial or legal action over the plans to cut pay for offshore workers. However they announced yesterday that, “The proposal to adjust rates on the 1st October 2009 has been withdrawn and no rates will change. Unite and GMB see this as a positive step and welcome this decision.”
A BP spokeswoman said: “Having listened to feedback on the proposed changes, it has been decided to postpone any changes until further detailed analysis of options has been completed.”
BP has made cutting costs a priority since the large fall in the oil price late last year. The North Sea, a high-cost area where production is declining, has been a particular focus of its cost-cutting efforts.
Filed under: Contractor News
