Energy Services Agreement celebrates first year of operation

2/28/2022

Offshore Energies UK, a trade body for the UK’s integrating offshore energy industry, celebrated the first anniversary of the ground-breaking Energy Services Agreement (ESA).

The ESA is a collective bargaining agreement that sees the signatory companies commit to creating a safe, productive, and engaged workforce across their areas of operation. The employer and trade union signatories take the lead in setting the standard for employee relations across the offshore energy industry. 

After a successful first year in operation, the ESA has:

  • Provided a new and alternative approach to employee relations. 
  • Increased the voice of the offshore workforce by expanding its coverage from 7 to 14 employers and 3 trade unions. 
  • Reduced complexity and increased transparency across all stakeholders, by focusing payment on time worked. 
  • Transformed the annual negotiations process, which has seen a 97% reduction in the hours on conducting the annual review, by introducing a standardized process.

The progress that has been made in its first year will allow the ESA signatories to spend 2022 focusing on expanding the agreement. By attracting more employers to the list of signatories and, in turn, further strengthening employee engagement ensuring the workforce has a voice as the offshore energy industry evolves.

“The commitment shown by all ESA signatories to work together collaboratively has resulted in issues being dealt with quickly, without the need for further escalation,” OEUK ESA Manager Irene Bruce said. “I’m proud to be leading the further development of the ESA and look forward to speaking to other companies who want to work with us to take the lead and challenge the future together."

The first anniversary of the ESA should serve as evidence that where the will exists to embrace collaborative working, it will deliver significant returns, a comment on behalf of the three signatory Trade Union Rep said. Workforce engagement continues to be a cornerstone of the agreement and increasing the network of workforce representatives will improve this still further, the comment said.
 “Establishing the Energy Services Agreement was a pivotal moment in the UK North Sea’s evolution, ensuring that the people who keep critical energy flowing safely and dependably, are positively engaged and supported by the companies they work for,” said Craig Shanaghey, President of Operations across Europe, Middle East and Africa at  ESA signatory Wood. “Seeing the ESA reach its first year anniversary and progress through its inaugural pay review cycle has proven the value of this agreement – ensuring the transparent, fair and timely application of salary increases, thus creating more space and time for the collaborative conversations and opportunities that will ensure our people are at the heart of the transition to a net-zero future.”

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