A threat of strike action on oil platforms in the North Sea was reiterated on 21 March by the Unite union. The union also announced the resolution of a dispute involving a relatively small number of contract workers at BP facilities.
Threat of a “tsunami” of strikes on oil platforms
The union announced in a statement that following a “great deal” guaranteeing additional paid time off and other improvements, the planned strike by about 50 members employed by the Sparrows service company would not happen after all. However, the union reiterated its threat of a “tsunami” of strikes that it said could shut down dozens of oil and gas rigs in the North Sea, following votes by its members earlier in the week.
Unite said the strike action is expected to affect UK offshore operators including BP, CNRI, EnQuest, Harbour Energy, Ithaca Energy, Shell and TotalEnergies. Organizers have not yet announced a date for the strike, and it remains to be seen what impact it will have. Another 150 Sparrows employees are also expected to strike at other non-BP facilities, Unite added.
A worrying situation
Unite General Secretary Sharon Graham urged other North Sea contractors and operators, including Sparrows Offshore Service with whom the union is in dispute, to recognize their members’ resolution, do the right thing and come back with an offer their members can accept to avoid a possible wave of industrial action. Several operators declined to comment, while a Shell spokesman said earlier that the company was calling for “constructive dialogue between Unite and the contractor companies to reach a mutually agreed outcome.”
The conflict could seriously affect British oil operators, who are already facing high economic uncertainty in Europe. On March 20, Platts, a division of S&P Global Commodity Insights, valued the North Sea benchmark Dated Brent at $71.71/bbl, down 58 cents on the day.
