Wood Group PSN cutting UK-based contractor pay by 10%

Major oil services provider Wood Group PSN is to cut the rates it pays UK-based onshore contractors by 10%, it has been announced.

The Aberdeen-based company said it needed to "control costs for clients".

Wood Group PSN said an internal review showed contractor rates had risen three times more than staff rates in the last five years.

The move will take effect from 1 June. Some contractors will be offered the opportunity to become staff.

'Safeguard the future'

WGPSN's UK managing director Dave Stewart said: "We need to control costs for our clients and focus on increasing our staff ratio.

"Escalating contractors' rates are driving industry costs up, which inhibits investment, growth and long term sustainability.

"We don't believe this is sustainable, and we need to control costs to help maximise economic recovery and to safeguard the future of the North Sea.

"The North Sea is a relatively mature sector and we believe this kind of decision isn't optional, it's necessary - we have to better manage costs and focus on developing employees, in order to create job security for future generations."