Attention of Union Members Covered by the Offshore Contractors Partnership Agreement (OCPA)

Attention of Union members covered by the Offshore Contractors Partnership Agreement (OCPA)

Our Ref: SH/0001/OCA

20th February 2018

Dear Colleague,

OCA Pay and Conditions Offer 2018/19

Your Union workplace Representatives, Regional Officers and National Officers have been negotiating with the OCA employers over the past few months.

We detail below the OCA pay and conditions offer for 2018/19 which includes a 2.2% pay increase and if this is accepted following the consultative ballot it will be effective from 1st April 2018.

This means that there will be no dubiety as to the entitlement of the pay increase and other benefits for those who are in employment with an OCA company on 1st April 2018.

There is also an increase in the Life Assurance benefit with a lump sum now £75000 to be paid in the event of the death of an employee plus other improved benefits as outlined below.

In addition to a pay increase of 2.2% there has been considerable discussion around the job insecurity over the past few years with employers paying employees off and rehiring on short term basis.

This has created considerable employment instability for offshore workers thus the OCA employers have committed to stabilising employment by creating a retained offshore worker category where long term employment stability can be achieved.

The terms of this are set out below and all three Unions fully support this approach especially because it will move away from the temporary short term employment that we know does not have the support of the offshore workforce.

This proposal to stabilise long term employment for initially 600 ad hoc employees is to be welcomed and is a significant plus for those who are on short term ad hoc temporary work schedules.

In order to achieve this goal of employment stability it has been necessary to review the stand by pay arrangements for when you are kept at home.

The standby pay for when you are sent home early from a rotation will remain at 12 hours full rig rate and this will also apply if you have arrived at your onshore base for mobilisation but are stood down.

The standby pay whilst at home will be reduced on the 30th June this year to £80 a day however with the goal of achieving long term stability of employment with a new minimum guaranteed salary if work is not provided then the objective is that no employee should find themselves on long or short term stand by as the aim is to provide long term work for ad hoc employees.

We set out below the pay and conditions offer tabled by the OCA.

Rates of pay

An increase in the D1 hourly rate based on Category B craftsperson from £19.70 per hour to £20.13, an increase of 2.2%. This increase will be applied to all Categories, A-Technician, C-Semi-skilled and D-Unskilled and to the sickness pay, training rates and holiday pay elements of the agreement.

Salaried and Day rates

All Salaried and Day rate packages will have a base standard and this will be incorporated into the OCPA. This means that all Categories in Appendix G will be within scope of the OCPA. This ensures that any increase in monetary values contained in Schedule D will be applied to all base standard terms as detailed in the revised OCPA, which will provide an increase to the base rates of all OCA employees.

We emphasise ALL as we know this has been an issue of contention for our respective members. Where enhanced terms and conditions above the OCA base rates exist, OCA member companies may seek to adjust these enhancements to take account of the base rate increases. Where this is being considered, it will be discussed separately with the Trade Unions and the affected employees.

Permanent Retained Employment Contract

In conjunction with OCA employers we are seeking to introduce a new contractual model which will address the issues around continuity and security of employment and reduce the instances of 'rolling notice' or lengthy stand-by periods. The aim is to eliminate these practices completely and the "Permanent Retained Contract" (PRC) model is the starting point. In the first year of introduction we have agreed a target figure of 600 Ad-Hoc OCA employees to move into this contractual model, if accepted by Trade Union members.

The PRC would see workers issued with a contract of employment that guarantees a salary every month equivalent to 1/3 (one third) of a 182-day working year on the OCA Base Rates (154 working days plus 28-days holiday) including field break pay. The PRC contract would aim to provide 154-days work offshore. Each day spent offshore the employee will receive an offshore day rate in addition to their salary. These 154 offshore day-rate payments are equivalent to 2/3 of a 182-day working year inclusive of field break payments, divided by 154. Any days worked beyond 154-days would be paid at full OCA Base Rate. See the example enclosed.

OCA employers will look to identify and offer the first 600 employee's the PRC within the first 13-weeks from the review date of April 1st. In addition, a temporary retainer protection payment will apply to PRC employees with less than 2-years’ service. This would be an incremental benefit of £7.69 for every week in employment and would be paid to any employee made redundant in the period 1st July 2018 to 31st March 2019. Any employee on PRC with 2-years’ service or more will be entitled to the statutory redundancy payments only. The retainer protection payment is a temporary measure from 1st July 2018 to March 31st 2019 to assist withthe transitional arrangements and will cease after this period.

Other Paid Hours

As part of the OCPA restructuring and specifically the introduction of the Permanent Retained Contract, an adjustment is proposed to the D3 other paid hours element of the agreement. This payment will reduce to £80 per day for each category. For clarity, this will apply for periods of stand-by before check-in. If a delay occurs after check-in, current practice of the full 12-hours at offshore rate will apply, as will any shortfall in a designated offshore cycle. Field break payments will apply as they do currently.

Life Assurance

Life Assurance will increase to £75,000 for death by any cause (up from tiered provisions between £30,000 to £60,000 and other elements have been consolidated in the current Appendix E as per the table enclosed.

Rope Access

Rope access to be paid as a day rate of £24 based on 12-hours per day, rather than an hourly rate for hours physically engaged in rope access.

Welding Rates

Consolidation of the current welding rates into one rate of 51p per hour, which is equivalent to D17 maximum rate.

Training Rate

Training time between 0 to 4 hours in duration will be paid at 4 hours; training that exceeds 4 hours duration will be paid as a minimum 8 hours. Field break for training will be applied as it is currently.

OCPA Job Categories

A summary of proposed changes to job categories is enclosed.

OCPA Re-wording

The re-wording of the OCPA is ongoing and will be subject to amendment with the proposals set out in this formal offer from the employers, if accepted by our Trade Union members.

All three Unions now ask that you give serious consideration with a view to supporting this pay and conditions offer from the OCA as it’s the best that we could achieve through these negotiations.

Please ensure you vote in this consultative ballot and please do so on or before Tuesday 27th March 2018 when the ballot will be closed.