Experts have warned that thousands more run the risk of losing their job in Aberdeen as a result of the oil crisis that has affected the prices of oil.
More than 5,500 have lost their job as a result of the downturn in the price of oil with industry watchdog and trade union Unite both warning that cuts to the industry could put more jobs at risk.
Deirdre Michie, chief executive of Oil & Gas UK, told The Herald: “We are applying the lessons we have learnt from the past and we know that our focus cannot merely be on ‘cutting costs’.
“In a more profound and universal way we must address the efficiency of the basin so that, if or when the oil price bounces back, we will be best placed to seize new opportunities.”
The concerns for the future of the industry were also shared by Pat Rafferty, the Unite Scottish Secretary, who said: “Oil firms have received £1.3 billion in tax breaks, but are still cutting jobs which could ultimately impact on health and safety.
“Over the longer term, we have major concerns about a brain drain and there being a lack of skills and expertise in the industry for when oil prices begin to recover.”
A Scottish Government spokesman said the sector employed 200,000 people and that Scotland remained a “global leader” in the oil and gas industry. This statement came despite North Sea exploration reaching its lowest level in at least two decades last year, with only 14 explorations wells drilled, compared to 44 in 2008.
The issue comes amid a warning that the proposal for Aberdeen’s city centre will fail to regenerate the city and provide the much needed job boost. Whilst the city council are claiming that a new regeneration of the city could produce up to 5,000 jobs, analysts have warned that there is no evidence to support these findings. As well as stating that the jobs may not be created, Tony Mackay, an economic consultant, stated that the plans need to be redrawn due to the oil crisis that is affecting the city.
Many of the oil firms are entering into settlement agreement discussions with their members of staff in order to ensure that they are not losing staff to competitors as well as enabling staff to have amicable discussions when leaving. While settlement agreements are seen as a bad thing, they can be beneficial to both employers and employees. Employees normally get granted a lump sum (at least three months wages) and the amount is normally tax free. Employers get to ensure that the staff do not take legal action or claim unfair dismissal, and can also put aspects into the agreement that prevents workers from joining competitors or passing on trade secrets.
It is vital however that if you enter into a settlement agreement, you do so with the advice of a solicitor. They can provide the best representation and advice when going forward and can inform you of the necessary steps to take when going through such a process.
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