Union: Workers Will Meet To Discuss BP UK Contractor Cuts

Workers in the U.K. offshore oil and gas industry will meet in the next few weeks to determine their response to wage cuts proposed by a number of contractors for oil giant BP PLC (BP), said the Unite union Wednesday.

"BP are looking to make significant savings in the North Sea and they are asking our members to bear the brunt of the cost savings" through measures including wage cuts, said Willie Wallace, regional officer for Unite in Aberdeen, Scotland. "Our members offshore have already reacted with anger at the level of the proposed cuts," he said.

The cuts will affect around 800 workers for contractors AMEC PLC (AMEC.LN), John Wood Group PLC (WG.LN), Sparrows Offshore, RBG, BIS Salamis, PSN and Cape PLC (CIU.LN), Wallace said. The contractors have commenced a 90-day consultation on the proposals, he added.

Construction projects at power plants, chemical plants, refineries and gas import terminals were affected last week when more than 4,000 contractors staged unofficial strike action to protest job losses at Total SA's (TOT) Lindsey oil refinery in eastern England.

Company Web site: http://www.unitetheunion.com

-By James Herron, Dow Jones Newswires; [phone]; [e-mail]