Labour's Rhoda Grant seeking to safeguard oil jobs amid downturn
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Highlands and Islands MSP Rhoda Grant is striving to safeguard oil jobs amid a massive downturn in the sector.
It comes as leading trade association Oil and Gas UK (OGUK) predicted that up to 30,000 jobs, mainly in the North Sea supply sector, will be cut in the next 12 to 18 months.
In the immediate term, the Labour MSP has been supporting efforts to secure the wages of oil workers whose jobs are at risk of being slashed within weeks.
She said: “I am in touch right now with industry leaders and I am supporting my North East Labour MSP colleague Lewis Macdonald’s work at a national level to secure the salaries in the short term for hundreds of oil workers through the UK Government’s Coronavirus Job Retention Scheme, which allows businesses to claim state money for employee salaries.
“Under the scheme, employers can apply for cash grants online and put employees on furlough, meaning their job is put on hold and they do not work, but they are still employed. The state then finances 80 per cent of furloughed employees' salaries, up to £2500 per month. It is vital that these wages are secured even if only in the short term.”
Mrs Grant claimed some companies with workers on redundancy risk were clearly of the opinion that they were inhibited from the salary payment scheme because they knew they did not have any realistic prospect of having work for their “at risk” employees at the end of the lockdown restrictions.
“I am arguing that this is a misreading of the terms of the scheme, and that they should use this Coronavirus Job Retention Scheme to delay redundancy," the MSP said.
"Workers can be furloughed now, then made redundant later, as long as the furlough period is at least three consecutive weeks. It is vital for those families that we get the right outcome on this.”
Mrs Grant pointed out that the industry was a significant contributor to the economy of the Highlands and Islands, creating high-value employment for thousands of people across all parts of the region.
However, companies in the sector report a grim outlook as they deal with the fallout from the coronavirus pandemic and a 20-year low in oil prices, as well as a 14-year low for gas.
The figures have been published in a report issued by OGUK following a survey of its membership.
OGUK says the industry is expected to see a dramatic reduction in revenue, leading to concerns about the ability of some companies to survive a downturn that is likely to be even more severe than the one in 2015.
The report calls for urgent action to protect energy security, jobs and energy regions. OGUK has asked governments and regulators to support a three-stage framework to support the sector in dealing with the immediate crisis while positioning it to play a key role in the UK’s transition to a net zero future
OGUK chief executive Deirdre Michie said: “Like so many industries, our members have been profoundly impacted by Covid-19.
“With historic low oil and gas prices coming so soon after one of the most severe downturns our sector has experienced, these findings confirm an especially bleak outlook for the UK’s oil and gas industry. If the UK is to maintain its supply of domestic energy, protect jobs and build the critical infrastructure it needs to transition to a net zero future, ours is an industry worth fighting for."
