Wood Group is to implement a 10% rate cut for UK-based onshore and offshore contract workers and freeze salaries for the majority of its UK-based onshore employees.
The decrease for the international energy services organisation’s UK offshore and onshore contractors’ rates will be effective from 31 January 2015.
In addition salaries will be frozen for the majority of UK-based Wood Group onshore employees in response to cost and efficiency challenges affecting the UK North Sea oil and gas sector.
However, Wood Group is keen to retain employees and increase its staff ratio in the UK, so there will be opportunities for contractors to transfer to staff positions.
Dave Stewart (pictured) UK managing director at Wood Group, said: “These measures have not been taken lightly, but we believe they are required in light of the cost and efficiency challenges affecting the UK North Sea oil and gas sector, exacerbated by the fall in oil prices.
“We understand the need to contribute to creating a sustainable industry and are committed to playing our part to the long-term changes needed.
“We are committed to undertaking proactive reviews of our contractor rates on a regular basis to ensure competitiveness within the marketplace.”