Australian employees of oil and gas service provider Wood Group PSN can expect a salary freeze while contractors will experience rate reductions, a move the company said was in response to cost and efficiency challenges affecting the sector.
The subsidiary of London-listed company Wood Group announced the rate cut for contractors would be up to 15 per cent, applying to both onshore and offshore projects.
Salaries would also be frozen, but employees on current enterprise agreements would remain unaffected.
Wood Group, which has sales of $7 billion annually, operates in 50 countries, while its PSN subsidiary provides pre-operations, hook up and commissioning, maintenance, construction, project management, training and decommissioning services to oil and gas projects.
In WA, Wood Group PSN is an engineering, procurement and maintenance contractor for the North West Shelf project, recently winning work on the Karratha gas plant life extension project, in addition to modification and refurbishment services across a range of assets.
Managing director (Australia Asia-Pacific) Andrew Stewart said the decision was driven by a desire to be proactive about the financial sustainability of the sector.
“The safety of our people and the assurance of everything we design, construct, operate and maintain remains our top priority,” he said.
“We are taking measures to ensure we lead the market correction, reduce costs, drive value for our customers and play our part in safeguarding the long-term health of the industry.”
Sister company Wood Group Kenny is also active on the North West Shelf, recently winning a front end engineering design contract for the greater western flank phase two development.
