ENERGY
SERVICES
AGREEMENT
Issue 7
June 2023
Issue 4
Acknowledgments
In preparing and publishing this document, OEUK
13
gratefully acknowledges
the contribution of the founding employer signatory companies, namely:
•
Aker Solutions, Altera, Brand, KAEFER, Muehlhan, Navitas, ODE,
Oleochem, Petrofac, Ponticelli, Semco Maritime, Stork, Wood and
Worley
and that of the trade union signatory companies, namely:
•
Unite, GMB and RMT
While every effort has been made to ensure the accuracy of the information
contained in this publication, neither OEUK, nor any of its members will
assume liability for any use made of this publication or the model agreement
to which it relates.
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without prior written
permission of the publishers.
Crown copyright material is reproduced with the permission of the Controller
of Her Majesty’s Stationery Office.
Copyright © 2023 The UK Oil and Gas Industry Association Limited trading as
OEUK
ISBN: 1 903 004 73 2
PUBLISHED BY OEUK
London Office:
1st Floor, Paternoster House, 65 St. Paul’s Churchyard, London, EC4M 8AB
Tel: 020 7802 2400 Fax: 020 7802 2401
Aberdeen Office:
4th Floor, Annan House, 33-35 Palmerston Road, Aberdeen, AB11 5QP
Tel: 01224 577250 Fax: 01224 577251
[email protected]
www.oeuk.org.uk
Contents
1
SECTION ONE
1
1.1 VISION AND KEY BENEFITS
1
1.1.1 Vision
1
1.1.2 Key Benefits
1
1.2 SCOPE AND PRINCIPLES
1
1.2.1 Scope
1
1.2.2 Principles
2
1.3 REVIEWS AND AMENDMENTS TO THE ESA
3
1.3.1 Content and Structure
3
1.3.2 Rate Adjustment Mechanism (RAM)
3
1.4 TRADE UNION REPRESENTATION AND WORKFORCE
ENGAGEMENT
4
2
SECTION TWO
5
2.1 WORKING ARRANGEMENTS AND REMUNERATION
5
2.1.1 Minimum Rates of Pay
5
Flexibility and Supplementary Project Agreement
(SPA)
5
Work Rotation
6
Rotation Changes
6
Permanent Retained Contract (PRC)
6
Working Hours
6
Rest Period
7
Delay in Mobilisation
7
Training and Onshore Meetings
8
Overtime
8
Night Shift Allowance
8
2.2
Leave
8
Annual Leave and Holiday Pay
8
Sickness Absence
9
Compassionate
Leave
10
Bereavement Leave
11
2.3 Allowances and Expenses 11
2.3.1 Chargehand Allowance 11
Christmas / New Year Allowance
11
Industrial Rope Access Allowance
12
Retention Allowance
12
Temporary
Accommodation
Allowance
12
Expenses
12
2.4
Entitlement
13
Pension and Life Assurance
13
Notice Pay
13
3 SECTION THREE 14
3.1
DISPUTE RESOLUTION PROCEDURE
14
3.1.1 Interpretation and Collective Grievances
14
3.1.2 Collective Disputes
14
3.2 NOTICE AND TERMINATION 15
Appendices
16
A.1
Appendix 1: Signatories to the ESA
16
A.2
Appendix 2: Grades and Disciplines
18
A.3
Appendix 3: Schedule of Rates
19
A.4
Appendix 4: Rate Adjustment Mechanism (RAM)
21
A.5
Appendix 5: Payment Scenario Matrix
24
A.6
Appendix 6: Supplementary Project Agreement Template
28
A.7
Appendix 7: Definitions and Terminologies
32
A.8
Appendix 8: Version Control
34
a
Introduction
This collective bargaining agreement known as the Energy Services Agreement (ESA) has been
developed through the collaborative working of the founding employer signatory companies and
trade unions along with workforce representatives in an effort to future proof the needs of the
energy
industry
across
the
UK
Continental
Shelf
(UKCS)
as
we
transition
to
a
net-zero
environment.
The signatories to the ESA are listed in Appendix 1: Signatories to the ESA. This collective
bargaining agreement is intended for the sole use of the signatories of the ESA only. The
bargaining unit is defined in the Scope and Principles. The terms of the ESA shall be binding upon
all the signatories to this collective agreement. Section 2 of the ESA will be incorporated into the
terms and conditions of employment of employees who fall within scope of the agreement.
In this agreement the following shall be referred to as set out below:
•
Signatory employers, referred to hereafter as the “employers”.
•
Signatory trade unions, referred to hereafter as “trade union(s)”.
•
Energy Services Agreement, referred to hereafter as “ESA”.
•
All signatories to the ESA, referred to hereafter as the “signatories”.
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1 SECTION ONE
1.1
VISION AND KEY BENEFITS
1.1.1 Vision
The vision of all signatories to the ESA is the creation of a ‘living document’ which serves to
establish minimum standards for conditions of employment for supply chain companies engaged
in the energy sector. The vision of a ‘living document’ is considered vital to capture the changing
nature of the energy sector and enable companies and their employees to adapt and transition
to zero carbon operations.
1.1.2 Key Benefits
The key benefits of this approach include stability and certainty on a substantive cost element for
the industry and investors. This approach sets out the principles that will promote best practice
and support the sustainability of the supply chain. It will facilitate the retention and the
development of skilled workers and ensure those workers are part of a “Just Transition” which is
underpinned by the Scottish Governments Fair Work Framework.
1.2
SCOPE AND PRINCIPLES
1.2.1 Scope
The intention of this ESA is to deliver fair, equitable and transparent minimum base rates of pay,
related allowances, working hours and holiday entitlement across the energy services companies
operating on the UKCS. It will be for each employer organisation to determine the standard terms
and conditions of employment for each group of employees; however, those combined terms
shall be no less than the minimum base terms provided for in this ESA.
The bargaining unit for this ESA includes all employees within the scopes as outlined below:
•
Those employed under the grades and trades listed in Appendix 2: Grades and Disciplines
regardless of how payment is received.
•
Those employed to work offshore on the UKCS within the energy services sector.
•
Those engaged in construction, commissioning, modifications, maintenance, operations,
decommissioning.
The trade unions will conduct collective bargaining on behalf of all employees captured within
the stated bargaining unit in respect of the following matters only:
•
Minimum rates of pay and related allowances.
•
Working hours.
•
Holiday entitlement.
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1.2.2 Principles
The signatories recognise the importance and the benefits of promoting the ESA to all industry
stakeholders including Operators, workforce, existing and potential signatories along with other
industry stakeholders.
OEUK will provide the facilitation, administration, and support for the ESA to ensure the fullest
understanding and application of its content, continuation of the promotion of positive employee
relations, and support for a culture of continuously improving productivity and performance.
OEUK are not a signatory to the ESA.
All signatories, on behalf of their employees and members, understand that any future
improvements to these minimum base terms must be underpinned by productivity gains and
recognition of the cost improvement needs of the industry.
Furthermore, all signatories have agreed the following common objectives:
•
Commitment to encourage and provide a safe and healthy working environment.
•
Maintenance of fair and equitable minimum standard of base rates of pay and related
allowances, whilst recognising that employers can elect to adjust their respective
employees’ base rates of pay but cannot operate below the base rates specified within
the ESA.
•
Maintenance of good employment practices and industrial relations.
•
Encouragement of diversity and inclusion and to ensure all employees are treated fairly
and equally.
•
Increasing the voice of all employees across the offshore energy services sector
•
Working in partnership to maintain the ESA and continually reviewing it in line with the
needs of the sector.
•
Protecting the viability of the ESA by encouraging additional companies to join and
viewing those subcontractors who support the spirit of the ESA favourably, where
applicable.
•
Encouraging the continued development of skills to allow ease of transition across the
energy services sector.
•
Supporting industry programs and initiatives, including Fair Work, Roadmap 2035, and
energy transition.
•
Implementing, supporting, and adhering to published Industry Codes of Practice (ICoP)
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1.3
REVIEWS AND AMENDMENTS TO THE ESA
The ESA takes effect from 19 February 2021 and shall continue thereafter unless modified in
agreement among at least three quarters of the employers in line with the ESA Governance
guidance document and all the trade union signatories.
1.3.1 Content and Structure
The signatories agree to carry out annual reviews of the ESA via an established workgroup, of
representatives from across all signatories and workforce/employee representatives. The remit
of this workgroup will include:
•
Reviewing the non-financial content and structure.
•
Providing recommended updates including any legislative change requirements.
•
Providing constructive feedback and support towards updating of ICoPs.
1.3.2 Rate Adjustment Mechanism (RAM)
The signatories agree to utilise a RAM, as outlined in Appendix 4: Rate Adjustment Mechanism
(RAM), as the appropriate means of reviewing, annually, the base minimum rates of pay as
outlined in the Appendix 3: Schedule of Rates. This removes the need for any annual pay
negotiations as the RAM will be calculated each year and advised to all signatories to the ESA.
OEUK will carry out the calculation of the RAM, each year in August. They will advise all the
signatories of the outcome in writing by the end of August of that year
1
and issue updated
Appendix 3: Schedule of Rates. The employer signatories will implement the revised Schedule of
Rates which will be updated annually, with effect from 1 January of the following year.
Unless mutually agreed by all signatories, the structure and make-up of the RAM will remain in
place for a minimum of 3 years from 19 February 2021. A review will be carried out 6 months
ahead of the final calculation date, unless agreed by all signatories to review ahead of scheduled
anniversary date, due to exceptional circumstances. At that time, representatives from the
signatories will meet to review and agree on any adjustments to the RAM with agreement from
at least three quarters of the employers in line with the ESA Governance guidance document and
all the trade unions. This is also applicable to all other financial content and structure of the ESA.
Should a delay in implementation arise, as a result of a failure to agree on the outcome of the
RAM parameters, payment will be implemented from the first pay week following agreement
being reached.
It is agreed and accepted by all signatories there will be no departure from normal working or
stoppage of work or any steps to affect industrial action in support of any dispute relating to the
RAM during the respective and agreed calculation and/or review periods.
1
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1.4
TRADE UNION REPRESENTATION AND WORKFORCE ENGAGEMENT
In line with the Trade Union Representation and Workforce Engagement Code of Practice, all
signatories to the ESA will meet quarterly, including nominated trade union and employee
representatives via planned and organised workforce engagement forums. This will allow for the
continual review of changes within the industry, legislation and developments in working
practices and in support of the Scottish Government’s Fair Work Framework.
The employers recognise the value and rights of any employee to join a trade union, hold office
within a trade union and benefit from trade union representation however, all signatories accept
that there is no obligation for employees to become members of a trade union. On
commencement of employment, employers will make it known to all employees which trade
unions are signatories to the ESA. It is acknowledged that all trade union members will be subject
to the rules and constitution of that trade union.
Further information on appointment, responsibilities, duties, and the rights of a trade union
representative are outlined in the Trade Union Representation and Workforce Engagement Code
of Practice.
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2 SECTION TWO
2.1
WORKING ARRANGEMENTS AND REMUNERATION
2.1.1 Minimum Rates of Pay
A variety of payment structures exist across the different sectors and employers covered by the
ESA. It is a principle of the ESA that all employees, however remunerated, shall receive no less
than the equivalent of the minimum payments as defined in Appendix 3: Schedule of Rates based
on the number of days worked and paid according to the rotation allocated. Employees will be
notified of actual payment structure and remuneration within issued terms and conditions of
employment.
Appendix 3: Schedule of Rates highlights the base minimum levels of pay for hourly, day rated
and salaried employees and includes the Permanent Retained Contract (PRC) model that provides
for a retained salary element and additional payment when at work. Actual pay will differ
depending on type of contract applicable, the allocated work rotation and ultimately how many
hours are worked and paid annually. The examples provided in Appendix 3: Schedule of Rates for
minimum salary and the PRC are based on the highlighted number of days paid including holidays.
Any adjustments determined by the annual RAM will only be applied to the minimum base rate
and related allowances as specified in Appendix 3: Schedule of Rates. Thereafter it will be at the
discretion of each respective employer whether any adjustments are made to enhanced
elements. All elements enhanced above the base minimum outlined in Appendix 3: Schedule of
Rates should be advised to employees in writing.
Employers may, by means of consultation and review, remove, or adjust these enhanced
elements following an agreed notice period.
Appendix 5: Payment Scenario Matrix has been developed to provide examples and increase
visibility of payments that may be payable over a range of scenarios for illustration purposes.
2.1.2 Flexibility and Supplementary Project Agreement (SPA)
In recognition of the need for more flexibility within the energy services sector, whilst maintaining
minimum base rates of pay, it is understood employers may be required to vary the terms of the
ESA under specific circumstances. Should this be the case, the employer will consult with the
trade unions on behalf of the workforce in order to reach an agreement on the variations. Once
agreed all variations will be documented in writing within a signed SPA in a form similar to that
set out in Appendix 6: Supplementary Project Agreement Template. Details of the variation will
include, why the variation is necessary, how long the variation is for who it will apply to and what
the review period will be to ensure the SPA is removed and terms and conditions return to the
base minimum as outlined in the ESA.
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2.1.3 Work Rotation
Within the UKCS there are many variations of work rotations, and each employer will provide
details of the designated work rotation on commencement of employment in line with the
requirements of their contract for services from their operator client.
It is acknowledged that working rotations will vary according to the sector and operational needs,
requiring a number of different solutions to be adopted, however the maximum length of any
scheduled offshore trip will be restricted to 21 days, unless such a variation is due to reasons out
with the employer’s control e.g., environmental (i.e., weather) delays or the employee agreeing
to extend a trip for operational reasons.
2.1.4 Rotation Changes
Should a permanent change be required to the work rotation, each employer confirms their
commitment to meaningful consultation and as much advance notification as practically possible.
In advance of any rotation changes being implemented, consideration to the impact of changes
on work-life balance will be given during the period of consultation which should be no less than
any relevant statutory consultation periods.
2.1.5 Permanent Retained Contract (PRC)
Employees employed on a PRC model will be issued with terms and conditions of employment
specific to this model. The model provides a guaranteed minimum salary based on an expected
number of days worked per annum, that secures the employee’s availability for work. In addition
to the salary element, the employee will receive a day rate payable of each day when mobilised
offshore. Employees employed under the PRC model will be entitled to the same terms and
conditions as all other employees covered by the ESA, except for Delay in Mobilisation payments
and Retention Allowance.
2.1.6 Working Hours
Working hours offshore will comprise of two 12-hour shifts (10½ hour shift plus 1½ hours paid
meals and tea breaks) per day, i.e., 12 hours dayshift followed by 12 hours nightshift. The time
allocated to meal and tea breaks includes the time required to go between the place of work and
the messing facilities for meal breaks. The start and end of each shift shall be determined by local
circumstances.
Appendix 3: Schedule of Rates details the minimum base rates of pay, payable for all time worked,
which includes travel-time from designated check-in time to and returning from offshore
installation.
In the event of delays being incurred from the designated check-in time, employees may be
eligible to receive Delay in Mobilisation payments. Entitlement to such payments will be
identified in individual contracts of employment. Appendix 5: Payment Scenario Matrix provides
examples and illustrations of circumstances in which Delay in Mobilisation payments may be
payable.
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In the event of a delay occurring beyond the confirmed scheduled departure time from
installation, and provided employee has returned to work, payment will be made for each
complete hour worked at the overtime rate set out in Appendix 3: Schedule of Rates. This
payment is applicable for each complete hour worked until check-in for departure
16
.
All minimum base rate payments are limited to a maximum of 12 hours in any consecutive 24
hour period.
The applicable minimum base rate of pay will also be applied for any time associated with
approved safety seminars and training taking place at the work location during the employee’s
designated working time.
All time worked must be recorded as per each employer’s requirements. Other than paid annual
leave, non-working time, for example rest periods, will not be paid unless covered by a specified
element of this agreement or as outlined in terms and conditions of employment.
In line with the Health, Safety and Wellbeing Code of Practice each employer will monitor the
effects on health and safety and work-life balance. This Code of Practice will also provide guidance
on the required rest periods between working hours and work rotations.
2.1.7 Rest Period
For each work cycle completed, a period of rest will be provided in line with the specified working
rotation allocated. Salaried employees shall continue to receive their normal base annual salary
during such periods. For PRC employees, these periods will be paid at the applicable base salary
rate. For hourly paid and day rate employees, these periods shall be unpaid (unless designated as
a period of paid annual leave). Under normal working conditions the period of rest should at least
equal the number of days paid in that cycle. In line with industry guidance, the minimum period
of rest applicable, is no less than 7 days in any 21 day work cycle or at least one third of the
number of days worked in that previous rotation.
2.1.8 Delay in Mobilisation
Should a day rated or hourly rated employee on a regularly assigned rotation, be requested to
remain at home prior to a scheduled mobilisation or have their scheduled trip delayed or
cancelled for operational reasons, they will receive payment based on the base rate of pay for a
maximum of 8-hours in any consecutive 24-hour period.
Employees who do not have a regularly assigned rotation (other than those on salaried or the PRC
payment structures) and have been requested to remain at home prior to a scheduled
mobilisation or have a scheduled trip delayed or cancelled for operational reasons, will receive
Retention Allowance as set out in Appendix 3: Schedule of Rates.
Appendix 5: Payment Scenario Matrix provides examples and illustrations of circumstances in
which delay in mobilisation payments may be payable.
Employees must remain available to report to the employer’s onshore base within 24 hours of
the notice to mobilise being issued.
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2.1.9 Training and Onshore Meetings
Where reasonable and practical, completion of training, including online computer-based training
(CBT) should be carried out and completed during working time.
Where attendance at a designated training course, or the completion of CBT, or attendance at an
employer meeting is requested during onshore rest periods, employees will receive payment for
hours in attendance at their base rate of pay. This will be calculated from training course or
meeting start time until the training course or meeting ends. For CBT, payment will be based on
the average time taken for completion of allocated CBT.
Should an overnight stay be required either prior to attending or at the end of a full day’s training
course within designated onshore rest period, accommodation will be arranged by the employer
and a payment of 12 hours will be made. This payment is inclusive of the time paid to attend the
training course. In the case that an employee has been required to spend the night prior to and
at the end of training, they will only qualify for one 12-hour payment
16
.
Where applicable and defined within terms and conditions of employment, an allowance may be
included in all-inclusive day rated or salaried remuneration models to cover the completion of
mandatory training including any CBT.
2.1.10 Overtime
Working more than the scheduled working hours shall be avoided where possible. However,
employees must be available to work additional hours to cover essential work to meet operational
requirements.
Payment will be made for any pre-approved and completed additional hours worked above the
normal 12 hour shift, as set out in Appendix 3: Schedule of Rates. Allowance may be made in all-
inclusive day rates or salaried remuneration models to cover working additional hours where this
is expected to be a regular occurrence as stated within the terms and conditions of employment.
2.1.11 Night Shift Allowance
Equal allocation/opportunity of night shift working will be provided for all employees, so far as
reasonably practicable, within the scheduling and planning of the work.
Night shift allowance will be paid as outlined in Appendix 3: Schedule of Rates for each night shift
completed. This allowance may be included in all-inclusive day rated or salaried remuneration
models to cover night shift working where this is expected to be a regular occurrence as stated
within the terms and conditions of employment.
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2.2
Statutory Leave
2.2.1 Annual Leave and Holiday Pay
Annual leave entitlement, inclusive of all bank holidays
16
, will be 28 days (four weeks of seven
days) per annum, pro rata, taken in no less than 1-week blocks. All annual leave will require to be
approved in line with operational requirements.
Employees working on an equal time rotation, (equal number of days worked and rest days) are
entitled to request one work rotation off in each annual leave period. Such requests will not be
unreasonably refused; however, it must be recognised that employers are bound by the rotations
and logistics determined by installation Operators. Therefore, employees may be required to take
paid holidays during designated rest periods, albeit every effort will be made to accommodate
holidays and the promotion of a healthy work-life balance.
Employees working on non-equal time rotations (where rest periods exceed the number of days
worked) will have annual leave built into the rota pattern and this will be highlighted within the
terms and conditions of employment.
Due to the number of different working rotations in operation, specific rules regarding annual
leave entitlement and the process to request leave as outlined above will be defined within the
terms and conditions of employment or within the employer’s policies and procedures. These
may differ per sector and per the employer’s contract for services with their clients.
Payment for time taken as annual leave/paid holiday from equal time rotations, either from
designated working time or during rest periods will be calculated and paid at the equivalent base
rate of pay for hourly and day rated remuneration models. Annual salaries are calculated based
on number of days paid, including payments for annual leave.
To ensure payments made whilst on annual leave are in line with actual earnings and comply with
legislation, employers will make an additional payment based on a calculation of average earnings
over a reference period of the previous 6 working-weeks. Employees without a 6 working week
reference period, or who do not have a fixed working rotation or fixed rate of pay will be paid, for
each day of annual leave, 12-hours at average earnings over a 52-week reference or relevant
period if less than 52-weeks.
Elements of pay to be included in the calculation of the additional payment based on average
earnings over the previous 6 working week period are outlined below:
•
All overtime paid.
•
Any additional days or hours paid (whether onshore or offshore).
•
Chargehand allowance.
•
Christmas and New Year allowance.
•
Industrial Rope Access allowance.
•
Nightshift allowance.
•
Onshore Training undertaken in rest period.
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2.2.2 Sickness Absence
Each employer’s absence policy must be adhered to, including any requested documentation,
qualifying periods for enhanced payment entitlements and attendance at employer Occupational
Health providers for any necessary assessments.
Due to the nature of offshore work and in line with OEUK Guidelines, employees are required to
attend a Fit to Return to Work assessment, prior to returning offshore after sickness absence.
Every effort will be made to arrange this to coincide with sickness certificate expiry.
Statutory Sick Pay (SSP) is payable in line with the government scheme. To enable the payment
of SSP employees must self-certify in line with their employer’s absence policy for the first 7-days
of absence and a doctors’ certificate “Fit Note” must be provided to cover all absence after the
first 7-days including rest periods.
Enhanced Sick Pay (ESP) is payable at the rates detailed in Appendix 3: Schedule of Rates to
employees who reach a qualifying period of 13 weeks continuous service. ESP is paid in addition
to SSP.
ESP is payable for a maximum of 28 weeks in any rolling 52-week period. This can be made up of
consecutive or cumulative 28 weeks. ESP will reset once the employee has exhausted 28 weeks
and has been back at work for a consecutive 24 calendar weeks.
SSP and ESP will continue to be payable until the Fit to Return to Work assessment is completed
by Occupational Health (where entitlement has not been exhausted). Payment in accordance
with terms and conditions of employment will re-commence when the employee remobilises to
installation. Any enhancement to this payment is at the employer’s discretion.
Any contractual enhancement to ESP provided by the employer will be detailed within the term
and conditions of employment.
Employees who become certified sick whilst offshore will receive a maximum of 12 hours at base
rate of pay per day. Payment will cease on arrival at the employer’s onshore base and re-
commence when the employee remobilises to installation.
Suitably qualified and nominated Emergency Response Team (ERT) members, who are prevented
from working due to injuries sustained whilst carrying out their ERT duties, including offshore
drills, will receive a payment during any relevant period of incapacity for up to a maximum of 52
weeks, and subject to the employer’s absence policy. This payment will be calculated using the
base rates of pay outlined in Appendix 3: Schedule of Rates following the employees designated
rota. This payment will be inclusive of any entitlement to SSP or ESP.
2.2.3 Compassionate Leave
A request for compassionate leave should be made in line with the employer’s policy. All absence
for compassionate reasons, other than bereavement, will normally be unpaid. Payment in
accordance with terms and conditions of employment will cease on arrival onshore and re-
commence when the employee remobilises to installation. Any enhancement to this
arrangement is at the employer’s discretion.
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2.2.4 Bereavement Leave
A request for bereavement leave should be made in line with the employer’s policy. Employees
will be granted paid bereavement leave on the death of a Spouse/Partner, Child, Grandchild,
Parent or Parent of Spouse/Partner, Brother, or Sister. Bereavement leave will be payable at the
equivalent base rate of pay for 12 hours as set out in Appendix 3: Schedule of Rates for up to 5
days. Paid bereavement leave will only apply for days lost as part of the designated work rotation
i.e., where the employee had to miss a worked shift. Additional Parental Bereavement Leave will
be paid in line with government statutory scheme.
Where reasonable and necessary, longer periods of unpaid leave may be permitted if agreed in
advance with the employer.
Subject to the agreement of the employer, an employee may request bereavement leave for a
person other than those listed above, where the employee has special responsibility towards the
deceased person.
Payment in accordance with terms and conditions of employment will re-commence when the
employee remobilises to installation. Any enhancement to this arrangement is at the employer’s
discretion.
2.3
Allowances and Expenses
2.3.1 Chargehand/Foreman/Supervisor
16
Allowance
An additional allowance will be paid to those designated as Chargehand, Foreman or Supervisor
16
for all hours worked, in additional to their respective ESA basic grade or discipline as outlined in
Appendix 3: Schedule of Rates. Where applicable and clearly defined within terms and conditions
of employment this allowance may be included in all-inclusive day rated or salaried remuneration
models to cover the additional payment during this period.
2.3.2 Christmas / New Year Allowance
16
An additional daily allowance will be payable to employees who work offshore on any day
between 25th, December and 2nd January as outlined in Appendix 3: Schedule of Rates. This
payment is also applicable when an employee has checked-in and is available to start their journey
to or from an offshore installation.
Where applicable and clearly defined within terms and conditions of employment an allowance
may be included in all-inclusive day rated or salaried remuneration models to cover the additional
payment during this period.
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2.3.3 Industrial Rope Access Allowance
An additional proficiency allowance at the applicable level
16
as outlined in Appendix 3: Schedule of
Rates will be paid for each day worked, to designated Rope Access Operatives who are engaged
in the activity of rope access and who meet both points below:
•
Are qualified and independently certified to IRATA Rope Operatives requirement.
•
Where this specific competency is required to complete the work.
2.3.4 Retention Allowance
Employees who are employed on a rolling ad-hoc contract with no fixed rotation/project (other
than those on salaried or the PRC payment structures) and who are awaiting reassignment will
be paid Retention Allowance as outlined in Appendix 3: Schedule of Rates. Appendix 5: Payment
Scenario Matrix provides examples and illustrations of circumstances in which retention allowance
payments may be payable.
2.3.5 Temporary Accommodation Allowance
Should an employee not be able to return to their normal accommodation on their designated
offshore installation, they will receive a temporary accommodation allowance paid per night as
outlined in Appendix 3: Schedule of Rates. Only one payment will be applicable in the same 24-
hour period.
•
Scale 1 covers employees who cannot return to their normal accommodation and are
required to be accommodated in a temporary cabin or on another installation.
•
Scale 2 covers employees who are required to spend the night in temporary sleeping
quarters utilising for example sleeping bags on camp beds.
2.3.6 Expenses
Expenses for attending designated training courses, medicals or employer meetings will be paid
in line with the Travel, Accommodation and Expenses Code of Practice and the employer’s
expenses policy. No payment will be made for time spent traveling to and from attending work,
training, meetings or medicals.
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2.4
Statutory Entitlement
2.4.1 Pension and Life Assurance
The employer will provide a pension scheme in line with current legislation. Details of the scheme
will be provided on commencement of employment.
The employer will provide life assurance for all employees covered by the ESA as set out in
Appendix 3: Schedule of Rates subject to the rules of the relevant scheme and as outlined within
terms and conditions of employment.
2.4.2 Notice Pay
Notice periods required by both employers and employees will be outlined within terms and
conditions of employment in line with the Employment Rights Act 1996. Designated rest periods
will count towards notice periods for employees who are required to work during their notice
period.
Payment in lieu of notice for employees on a regular rotation will be made in line with scheduled
work rotation with employees receiving the same payment as if they had been requested to work.
Payment in lieu of notice for employees with no regular rotation will be calculated based on
average earnings over the previous 12-weeks worked, even where a week may include periods of
rest. Any working weeks in which there were no earnings will be replaced with a working week
in which there were earnings if applicable.
14 | P a g e
3 SECTION THREE
3.1
DISPUTE RESOLUTION PROCEDURE
This section covers issues of interpretation, collective grievances received in relation to a matter
within the ESA and collective disputes that may arise between the employers and the trade unions.
3.1.1 Interpretation and Collective Grievances
To assist with any interpretation issues that have resulted in a collective grievance being raised
within an employer organisation, which are directly related to the ESA, a referral should be made
to the person appointed to support the administration and facilitation of the ESA on behalf of the
signatories. Should the issue remain unresolved a resolution panel will be established. Once
considering all the facts and having spoken with all parties involved, the panel will reach a final
decision, which should then be actioned as intended. Should either side disagree with the
outcome they are requested to raise a failure to agree.
The panel will be made up of signatories not directly involved in the issue requiring resolution and
facilitated by OEUK. Selection of panel members will be in line with Competition Law
requirements, to ensure no conflict of interests arise, this will be outlined in the ESA Governance
guidance document.
3.1.2 Collective Disputes
Should a failure to agree arise between all employers and trade unions on matters relating to the
ESA the following steps will be taken to reach a resolution.
Stage 1
•
A meeting will be arranged between both the employers and trade unions, to discuss the
matters and seek resolution agreeable to all parties. Each area of concern should be
discussed in detail, evidence provided to back up the reason for the current position and
suggestions from all parties on how a resolution could be achieved. It is recognised that
compromise will be required from all parties to reach an agreed outcome.
Final Stage
•
Should this not result in a resolution, a meeting will be arranged between the National Trade
Union Officials of the trade unions, a selected group of senior representatives from the
employers, plus one other from the organisation administering the ESA on behalf of all
signatories to endeavour to resolve the issues as quickly as possible.
•
All parties are obliged to work towards a resolution of the issue. The agreed resolution should
seek to recommend ways to avoid any disputes of a similar nature arising in the future.
15 | P a g e
•
Consideration should be given to bringing in a third party to assist with conciliation where no
resolution can be reached between the employers and the trade unions.
•
Once resolution has been reached, the decision will be communicated and implemented
(where appropriate) within the timeline agreed as part of the dispute resolution.
All signatories agree that whilst this procedure is in use, the status quo, (i.e., whatever conditions,
practices, or agreements on working and management that applied prior to the issue being
identified) will be maintained until resolution has been reached or exhaustion of this procedure
has been confirmed in writing by OEUK who facilitate the ESA and outlined in the ESA Governance
guidance document.
This means there will be no departure from normal operations, behaviours, relationships or
working under these conditions of employment or any other steps to effect stoppage of work or
any other form of industrial action until formal declaration of exhaustion of this procedure has
been confirmed in writing by OEUK who facilitate the ESA as outlined in the ESA Governance
guidance document.
3.2
NOTICE AND TERMINATION
Termination of the ESA must be made in writing on behalf of all employers or by all the trade
unions signatories by providing no less than 6 months’ notice.
Should an individual employer wish to withdraw from the ESA they should provide 6 months’
notice in writing to all signatories.
The 6 months’ notice periods may be waived by mutual agreement.
16 | P a g e
Appendices
A.1
Appendix 1: Signatories to the ESA
Company Authorised Signatory Position Date
Aker Solutions Ltd Ruth Tulloch Vice President 19.02.2021
Altera Infrastructure John Skanche HR Director 19.02.2021
ASCO Group Allan Scott Group Materials &
Innovation Director
28.03.2023
Bilfinger UK Ltd Sandy Bonner Managing Director 19.05.2022
Brand Energy &
Infrastructure Services
David Strang
17
UK Offshore Director 30.01.2023
KAEFER UK Ian Ramsey Divisional Director 19.02.2021
Altrad Energy
Support Services
14
Innes Haughey Operations Manager 15.03.2022
Navitas International
Solutions
Alan Mathers Managing Director 19.02.2021
17 | P a g e
ODE Asset
Management Ltd
Andrew Ferguson Regional Operations
Director
19.02.2021
Oleochem Project
Management Ltd
Ally Macsporran Technical Director 19.02.2021
Petrofac Alexander Merson Director – Operations
& Maintenance
19.02.2021
Ponticelli Olivier Renaud PBS GMOC Director 19.02.2021
Semco Maritime Ltd David Hutchinson
17
Managing Director 19.02.2021
Stork Technical
Services (RGB) Ltd
Mike Duncan Regional Director –
Maintenance &
Modifications
19.02.2021
Wood Group UK
Limited
Dave Stewart Chief Operating
Officer
2
19.02.2021
Worley Shaun Poll CEO of Asset Solutions,
EEEA
19.02.2021
GMB Ross Murdoch National Officer 19.02.2021
RMT Darren Procter National Secretary 19.02.2021
18 | P a g e
Unite Tony Devlin National Officer 19.02.2021
A.2
Appendix 2: Grades and Disciplines
APPENDIX 2: GRADES AND DISCIPLINES
Grade Discipline
1
Communication Control Room Operator Core Operator
Crane Mechanic/Operator
10
Electrical Technician
11
Fire and Gas Technician
3
Instrument Technician
11
Laboratory LOLER
Marine Cargo Operative Marine Plant Operatives Materials Controller
Mechanical Technician
11
Metering Technician Operations Technician
Process Technician Production Technician Radiological Protection
Supervisor
Rotating Equipment
Technician
Safety
2
Advance Scaffolder
Multi Coded Welder
16
3
Crane Mechanic Crane Operator Crane Operator / Helideck
Landing Officer
Deck Forman Electrician
11
Helideck Landing Officer
Instrument Pipe Fitter Insulator
11
Joiner
Mechanical Fitter Pipefitter
11
Plater
11
Rigger Scaffolder
11
Sheet Metal Worker
Welder
4
Administrator Asbestos Remover Cold Cutting Operator
Deck Operator Fire Proofer Helideck Attendant
Industrial Cleaner Painter / Blaster
11
Radio Operator
Specialist Cleaning
Operative
Storeman
5
General Assistant
19 | P a g e
3
20 | P a g e
A.3
Appendix 3: Schedule of Rates
4
Scale 1 Scale 2 Level 1
Level 2
16
Level3
16
Annual Annual Annual Daily Daily Hourly Hourly Daily Daily Hourly Hourly Hourly Daily Nightly Nightly Daily Daily Daily Daily
Retention
Allowance
Chargehand
Allowance
Night-shift
Allowance
Temporary
Accommodation
A
llowance
Christmas /
New Year
A
llowance
25 Dec to
2nd Jan
16
Retention
Allowance
Foreman
Allowance
16
Supervisor
Allowance
16
APPENDIX 3: SCHEDULE OF RATES JANUARY 2023
* Annual salary has been calculated using 189 days paid, including holiday pay as a working example. Actual salary calculations may vary dependant on number of days paid including holidays as advised in terms and conditions of employment.
** Permanent Retained Contract has been calculated using 154 days worked as a working example, holiday pay has been stated separately based on this worked example.
Grade
Base Rate
(189 days
pa
id)*
Permanent
Retained
C
ontract
Base Salary
- (based on
154 days
worked)**
Permanent
Retained
C
ontract
Holiday Pay
Permanent
Retained
C
ontract
Daily Uplift
Base Rate
Base/Paid
Rate 2023
Grade 1
£62,392.68
£16,946.16
£9,243.36
£220.08
£330.12
£27.51
£96.10
£2.15
£31.00
£19.00
£38.00
£85.00
£101.24
£30.48
£91.53
£2.15
£31.00
£19.00
£38.00
£85.00
£4.30
£5.80
£4.30
Grade 2
£59,829.84
£16,250.08
£8,863.68
£211.04
£316.56
£26.38
£2.15
£31.00
£19.00
£38.00
Grade 3
£58,015.44
£15,757.28
£8,594.88
£204.64
£306.96
£25.58
£4.30
£4.30
£89.40
£204.60
£17.05
£96.43
£30.48
Grade 4
£55,089.72
£14,962.64
£8,161.44
£194.32
£291.48
£24.29
£89.40
£2.15
£31.00
£19.00
£38.00
£85.00
£94.19
£30.48
£84.86
£30.48
£62.74
£59.55
£2.15
£31.00
£19.00
£38.00
£85.00
Grade 5
£38,669.40
£10,502.80
£5,728.80
£136.40
Overtime
Rate
£41.27
£39.57
£38.37
£36.44
£25.58
£4.30
£5.80
£5.80
£5.80
£5.80
Ind Rope Access Allowance
£42.48
£60.00
£42.48
£60.00
£42.48
£60.00
£42.48
£60.00
£42.48
£60.00
£85.00
£30.48
21 | P a g e
Enhanced Sick Pay and Accident Benefits: -
Enhanced sick pay and accident benefit payable for absence from work due to sickness or injury. These payments are in addition to SSP at the current
rate set annually by government (excluding the first 3 days of absence from work, SSP 8 weeks linking rule applies). Qualifying period of 13-weeks
continuous service required before enhanced sick pay is payable.
Weeks 1-13
£223.40 per week
Weeks 14 – 28
£580.85 per week
(Maximum 28 weeks)
Life Assurance Benefits: -
Death Due To Illness
£30,000
Accidental Death (not work related)
£34,000
Accidental Death due to Onshore Non-Occupational Accident
OR Accidental Death due to Onshore Occupational or Site Accident
£38,000
OR Accidental Death due to Offshore Accident (including Helicopter flights to and from offshore installation and whilst travelling to and from home to
onshore base).
£60,000
Accident NOT resulting in Death
£20,000
Permanent Disablement Benefit (as a result of work-related accident) per a scale of benefits up to a maximum in all for one accident of
Loss of limb and/or Loss of eye (as a result of work-related accident)
£10,000
Upper Limbs as a result of work-related accident
Left
Right
Loss by amputation of one thumb
£2,000
£2,000
Loss by amputation of one forefinger
£950
£1,250
Loss by amputation of any other finger
£450
£750
Lower Limbs as a result of work-related accident
Left
Right
Loss by amputation of big toe
£1,000
£1,000
Loss by amputation of any other toe
£500
£500
If the injured person is left-handed, the payment set out above for the various disabilities of the right upper limb and left upper limb shall be transposed.
22 | P a g e
A.4
Appendix 4: Rate Adjustment Mechanism (RAM)
Taking effect from 19 February 2021, the Rate Adjustment Mechanism (RAM) outlined below will
become the only means available to review the minimum base rates of pay annually. The outcome from
the RAM is only applicable to the base rates of pay, and it will be at the discretion of each respective
employer whether to increase any enhanced elements. All signatories have agreed to the principles of
the RAM, which is to increase transparency, predictability and to automate the annual review of the
minimum base rates of pay without the need for annual pay negotiations.
OEUK will calculate the annual adjustment and communicate the outcome by issuing the updated sector
specific Schedules of Rates (Appendix 3), which detail the minimum base rates of pay in the Energy
Services Agreement by the end of August
5
. The employer signatories will implement any adjustment to
the minimum base rates of pay with effect from 1 January of the following year.
The structure, content and parameters of the RAM has been verified and agreed by all UKCS Operators
via OEUK, to increase transparency and aid the annual approval and implementation process.
Unless agreed otherwise by all signatories, the structure and make-up of the RAM will remain in place
for a minimum of 3 years from 19 February 2021. A review will be carried out 6 months ahead of the
final calculation date, unless agreed by all signatories to review ahead of schedule anniversary date, due
to exceptional circumstances. At that time, representatives from the signatories will meet to review
and agree any adjustments to the RAM. This is also applicable to all other financial content and structure
of the ESA.
It is agreed and accepted by all signatories there will be no departure from normal working, or stoppage
of work, in support of any claim falling within the agreed terms of the RAM and the ESA during the
respective and agreed review periods.
How the Rate Adjustment Mechanism is calculated
The RAM will be calculated using the following steps:
Step 1 – Collate the 12-month rolling average CPI % from ONS along with the 12-month rolling average
published oil and gas price figures and update the RAM calculation sheet.
Step 2 – The RAM calculation sheet will calculate the new base rate prior to applying the commodity
price adjustment to give the new paid rate.
Step 3 – The new base rate and the new paid rate for each grade will be calculated, applicable from 1
January of the following year.
Step
4
–
Advise
all
signatories
of
the
calculation
and
issue
the
updated
sector
specific
Schedules
of
Rates.
In subsequent years, calculations are applied to the base rate, i.e., the previous year’s commodity price
adjustment is not included.
5
23 | P a g e
Calculation Mechanism Factors
Parameters Brent Spot Oil Price Day Ahead Gas Price
Mid-Range Indicator $45 30p/therm
Adjustment Range Minus 2% @ $20 /
Plus 2% @ $70
Minus 2% @ 15p /
Plus 2% @ 45p
Source: Data points are outlined in the chart below for reference.
The Commodity Price Adjustment is weighted 2/3 oil price and 1/3 gas price.
Should the CPI% increase and the Commodity Price Adjustment result in a total percentage increase of
above 4% the percentage to be applied to the new paid base rate will be restricted to 4%.
The annual calculation may result in a change up or down to existing paid rate; however, the paid rate
will not fall below the minimum base rate of the previous year. The review does not guarantee that a
change will be made to rates.
Examples to aid understanding:
Scenario 1
Year 1 2021 Maintain 2020 rates, i.e., no application of mechanism
Base Rate = 100, Paid Rate = 100
Year 2 2022 12 month average CPI @ August 2021 = 1.8%
12 month average CPA @ August 2021 = 0.8%
New Base Rate = 100.0 + 1.8% = 101.8
New Paid Rate = 101.8 + 0.8% = 102.6
Year 3 2023 12 month average CPI @ August 2022 = 2.1%
12 month average CPA @ August 2022 = 1.2%
New Base Rate = 101.8 + 2.1% = 103.9
New Paid Rate = 103.9 + 1.2% = 105.1
3.5
2.5
1.5
0.5
0.5
1.5
2.5
3.5
% Adjustment
Commodity Price Adjustment
Brent Spot Oil Price $/barrel
Day Ahead Gas Price Pence/therm
24 | P a g e
Scenario 2
Year 1 2021 Maintain 2020 rates, i.e., no application of mechanism
Base Rate = 100, Paid Rate = 100
Year 2 2022 12 month average CPI @ August 2021 = 2.0%
12 month average CPA @ August 2021 = 2.0%
New Base Rate = 100.0 + 2.0% = 102.0
New Paid Rate = 102.0 + 2.0% = 104.0
Year 3 2023 12 month average CPI @ August 2022 = 1%
12 month average CPA @ August 2022 = 0%
New Base Rate = 102.0 + 1.0% = 103.0
New Paid Rate = 103.0 + 0.0% = 103.0
Scenario 3
Year 1 2021 Maintain 2020 rates, i.e., no application of mechanism
Base Rate = 100, Paid Rate = 100
Year 2 2022 12 month average CPI @ August 2021 = 1.5%
12 month average CPA @ August 2021 = 2%
New Base Rate = 100.0 + 1.5% = 101.5
New Paid Rate = 101.5 + 2% = 103.5
Year 3 2023 12 month average CPI @ August 2022 = 2%
12 month average CPA @ August 2022 = (-0.5%)
New Base Rate = 101.5 + 2.0% = 103.5
New Paid Rate = 103.5 + (-0.5%) = 103.0
6
24 | P a g e
A.5
Appendix 5: Payment Scenario Matrix
APPENDIX 5: PAYMENT SCENARIO MATRIX
This
document
has
been
developed
to
provide
examples
and
increase
visibility
of
payments
that
may
be
payable
over
a
range
of
scenarios
for
illustration
purposes.
Pre-
Mobilisation
Hourly Paid Day Rated
Permanent Retained
Contract
Salaried
1
Mobilisation delayed. Employee has been given a date to
commence employment, or to report for training or first
mobilisation. Delay is notified before the employee has left
home.
8 hours @base rate for each day from start
of
employment, completion of training until
mobilisation or made redundant.
Monthly Salary
2
Told to stay at Home. Regular Assigned Rotations Employee is
on a second or subsequent trip. Employer informs employee
that mobilisation is delayed or cancelled for operational
reasons.
8 hours @ base rate for each day from
end of unpaid rest period until
mobilisation or duration of advised trip.
Monthly Salary
Mobilisation
3
Travelled to employers designated point of mobilisation,
mobilisation is delayed and asked to return home or hotel.
Delay is of sufficient duration to justify instructing employee to
return to home or hotel and await instructions.
8 hours @ base rate for each day from end
of unpaid rest period until mobilisation or
duration of advised trip.
Monthly Salary plus
additional 4- hrs at
ESA base rate for
that day.
16
Monthly Salary
4
Checked in and mobilisation is delayed and requested to
return home. Employee has reported to Employers
designated point of mobilisation for transport to installation.
Transport is delayed. Delay is of sufficient duration to justify
instructing employee to return to home and await
instructions.
12 hours @ base
rate for each day
until mobilisation
or duration of
advised trip.
Day rate for each
day until
mobilisation or
duration of
advised trip.
Monthly Salary plus
offshore day rate.
6
Monthly Salary
7
25 | P a g e
5
Checked in and mobilisation is delayed Employee has
reported to Employers designated point of mobilisation for
transport to installation. Mobilisation is delayed and is
expected to last beyond one day, expect to mobilise the
following or subsequent day held at hotel meantime.
12 hours @ base rate
for each day until
mobilisation or
duration of advised
trip.
Day rate for
each day until
mobilisation or
duration of
advised trip.
Monthly Salary plus
offshore day rate.
7
Monthly Salary
6
De-mobilised early Employee has mobilised to installation,
trip has been shortened due to operational reasons and
employee is returned onshore prior to completion of
scheduled trip.
12 hours @ base rate
for each day for
remainder of
scheduled trip.
Day rate for
each day for
remainder of
scheduled trip.
Monthly Salary plus
offshore day rate.
Monthly Salary
7
De-Mob Late (held on platform) Employee has completed
work cycle, but transport to beach is delayed. Where
practicable, employee is instructed to return to work.
All working hours @ stated ESA
overtime
16
rate until check in for
departure
Monthly Salary plus
ESA stated overtime
16
rate.
Monthly Salary plus
all additional hours
worked @ESA stated
overtime
16
rate until
check-in for
departure
Change in Rota
8
Change Rota - Delayed remobilisation Employee is advised to
return to installation following delayed re-mobilisation. Date
of mobilisation is first day of a new rota.
8 hours @ base rate for each day from
end of unpaid rest period until
mobilisation. New rota is then followed.
Monthly Salary
9
Change Rota - Early demobilisation. Employee is advised prior
to mobilisation of the requirement to demobilise early in
order to commence unpaid rest period prior to returning to
installation to change to new rota pattern. Next date of
mobilisation is first day of a new rota.
Unpaid rest period. Each day from end of
trip until remobilisation onto new rota.
Monthly Salary
26 | P a g e
Retention
10
Told to stay at Home - Not Assigned to Regular Rotation.
Employee is on a second or subsequent trip. Employer
informs Employee that mobilisation is delayed or cancelled
for operational reasons.
Retention Allowance as per Schedule of
Rates for each day from end of unpaid
rest period until mobilisation or made
redundant.
Monthly Salary
11
No Work - End of Contract. Employee has completed work
cycle and returned to home. Project is declared complete, and
employee is instructed to await re-assignment following
completion of assignment.
Retention Allowance as per Schedule of
Rates for each day from end of unpaid rest
period until mobilisation or made
redundant.
Monthly Salary
Monthly salary, until
reassigned or made
redundant.
Absence
12
Return to work - Sickness Absence - Assigned to Regular
Rotation. Employee has been assessed fit to return to work
after a period of sickness absence via the Company
Occupational Health provider. Employee is on a regular
rotation.
Payment at basic rate will re-commence
on check-in for next mobilisation.
Monthly Salary plus
offshore day rate will
recommence on
check-in for next
mobilisation.
Monthly Salary will
recommence on
check-in for next
mobilisation.
13
Return to work - Compassionate or Bereavement - Assigned to
Regular Rotation. Employee has made themselves available to
return to work after a period of absence due to
compassionate or bereavement absence. Employee is on a
regular rotation.
Payment at basic rate will re-commence
on check-in for next mobilisation.
Monthly Salary plus
offshore day rate will
recommence on
check-in for next
mobilisation.
Monthly Salary will
recommence on
check-in for next
mobilisation.
14
Return to work - Not Assigned to Regular Rotation. Employee
is now able to return to work from a period of absence,
Sickness, Compassionate or Bereavement. Employee is not
assigned to a regular rotation.
Payment at basic rate will re-commence
on check-in for next mobilisation.
Monthly Salary plus
offshore day rate will
recommence on
check-in for next
mobilisation.
Monthly Salary will
recommence on
check-in for next
mobilisation.
27 | P a g e
Training
15
In Person Training course. Employee is required to attend a
training course in person.
Payment at basic hourly rate will be paid
for each complete hour in attendance
from designated start time until
completion. For each separate day
attended until completion of course.
Monthly Salary plus payment at basic
hourly rate will be paid for each complete
hour in attendance from designated start
time until completion. For each separate
day attended until completion of course.
1. If a full day's training has been organised and the individual must travel the day before
and spend the night prior to the day of training, the employee will receive 12 hours
payment for that day's training and the employer will organise the overnight
a
ccommodation required.
2. When a full day's training has been organised and the individual is unable to return
home at the end of training, the employee will receive 12 hours payment for that day's
training and the employer will organise the overnight ac
commodation.
In the case that an employee has been required to spend the night prior to and at the end
of the training, they will only qualify for one 12 hours payment.
16
16
Online Training Course. Employee is completing computer-
based training during unpaid rest period onshore.
Payment at basic hourly rate will be
provided in line with average time
expected to complete online training
course as advised by the course provider,
for each CBT Training Course.
Monthly salary plus payment at basic hourly
rate will be provided in line with average
time expected to complete online training
course as advised by the course provided for
each CBT Training Course.
28 | P a g e
A.6
Appendix 6: Supplementary Project Agreement Template
Purpose
In recognition of the need for more flexibility within the Energy Services Sector whilst maintaining
minimum base rates of pay, it is understood employers may be required to vary the terms of the Energy
Services Agreement under specific circumstances. Should this be the case, the employer signatory to
the ESA will consult with the trade unions and workforce to reach agreement on the variations ahead
of any implementation and this will be documented in a Supplementary Project Agreement.
A Supplementary Project Agreement (SPA) is a signed agreement that allows for the temporary variation
of specified terms provided for under the Energy Services Agreement (ESA). The SPA is agreed by the
employer signatory and the signatory Trade Unions to the ESA.
A variation of terms contained within the ESA may be required to deal with exceptional circumstances
due to (but not limited to):
•
Nature and scope of works to be performed.
•
Site or Project specific variations, safety precautions or regulations.
•
Business or operational constraints, including temporary layoff options.
•
Circumstances out with the control of the employer.
The signatories to the ESA will outline within the SPA:
•
the reason for the proposed variation in terms.
•
the specific terms and sections that will be varied.
•
detailed methods of calculating and monitoring any variations.
•
the specific time the variation will take effect from and to.
•
any proposed review periods and the frequency.
•
the section of the workforce that the variation will affect.
•
the proposed consultation process, engagement, and timeline.
The SPA will be agreed and signed by the signatories with copies provided to all relevant parties
including employees, to allow transparency and awareness.
29 | P a g e
Template
Page 1:
Supplementary Project Agreement (SPA)
for
(Title/Reason/Name of Project)
between
(Company Name)
and
Signatory Trade Unions
(GMB, RMT & Unite the Union)
Page 2 and Subsequent Pages:
1.
Specify the Title of the Supplementary Project Agreement
2.
Parties to the Agreement
2.1.
For the Employer – (Insert Company Name)
2.2.
For the Trade Union – GMB, RMT and Unite the Union
3.
Trade Union Membership
The signatory trade unions to the ESA and this SPA are recognised to be the sole negotiating Trade
Unions for employees covered by this agreement.
4.
Background
Describe why a SPA is required. For example, short term nature of project, recruitment and retention
issues, commercial viability, specialist skills required, market conditions.
Include a summary description on which terms are to be varied, what has been requested by the client,
the timeline and the reasons why this is necessary.
5.
Effective Date and Duration
The effective date for this agreement is (insert date applicable from) and it will continue for (insert
duration.) (If required,) an annual review of this SPA will take place on (insert timeline) with a potential
extension agreed.
30 | P a g e
6.
Workforce
All employees currently (describe the group of employees to be covered by the SPA - Include as much
details as required to identify and specify the correct group of employees that the SPA will cover).
7.
Variation of ESA Terms
The following terms listed below, will be varied from the standard terms outlined in the ESA, due to
(insert reason), applying to (insert effected employees), for (insert timeline) (Include methods of
calculating and monitoring any variation in terms.)
Terms
(examples – add or delete
as appropriate)
Energy Services Agreement
current terms
(describe the current terms)
(Company Name) SPA
Variation of Terms
(provide details of the
variations)
Payment Method
Payment Rates
Allowances
Notice Period
Holiday Provisions
Holiday Pay
Pension Arrangements
8.
Consultation and Engagement
Following (insert number of days) consultation period and the acceptance of the proposed SPA, all
current employees on (insert identifying grouping) will receive an addendum to their current Terms and
Conditions of Employment that clearly defines the ESA terms to be varied, nature and scope of work to
be performed, commencement and duration, any methods of calculating and monitoring payments,
workforce communication requirements and any site or project variations, safety precautions or
regulations.
New employees will also receive a copy of the original base terms and conditions of employment along
with the addendum outlined above.
9.
Amendments/Early Termination to SPA
9.1.
Amendments
(insert Company name) reserve the right to make reasonable amendments to this SPA should the
circumstances laid out in section 4 change for any reason. Notification of any changes must be provided
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in writing to all parties involved. A consultation period of (insert number of days) will be applicable
before any changes become effective. All affected employees will be advised in writing of the exact
changes and the date these changes will become applicable from.
9.2.
Early Termination
Should (insert Company name) be required to terminate this SPA ahead of the specified duration of the
agreement, notification will be provided in writing to all parties concerned detailing the reasons why
early termination is necessary, the date that all supplementary terms will cease to exist from, that base
ESA terms will be applicable from (insert date) and what communication has been issued to the affected
employees.
10.
Signatories – to this agreement
Company Name Signature Date
Insert Company Name Company Project
Manager
Insert Company Name Company HR Manager
GMB
RMT
Unite
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A.7
Appendix 7: Definitions and Terminologies
APPENDIX 7: DEFINITIONS AND TERMINOLOGIES
CBT Computer Based Training
CPI% Consumer Price Index
CPA% Commodity Price Adjustment
ESA Energy Services Agreement
ICOP Industry Code of Practice
PRC Permanent Retained Contract
RAM Rate Adjustment Mechanism
UKCS United Kingdom Continental Shelf
CALCULATION
DATE Beginning of August
EMPLOYERS Employing companies who are signatory to the ESA
EQUAL TIME
ROATATION
Equal number of days worked and rest. Holidays may be requested from
working and rest time.
GAS PRICE Average of previous 12 months day ahead gas price
IMPLEMENTATION
DATE
1
st
January
MINIMUM ANNUAL
SALARY
The minimum base annual salaries are calculated based on the number of
days paid, including payments for annual leave.
MINIMUM BASE RATE
OF PAY
Calculated including both CPI% and CPA% adjustments
NEW BASE RATE Calculated including CPI% adjustment
NON-EQUAL TIME
ROTATION
Number of rest days exceed the number of worked days.
Periods of
annual leave are built into the rotation; therefore, holidays cannot be
requested separately.
NO REGULAR ROTATION No fixed rotation, employed to complete a scope of work and then moved
to another scope of work once complete.
OIL PRICE Average of previous 12 months brent spot price
PERMANENT RETAINED
CONTRACT
The minimum base PRC rates are calculated based on the expected
number of days worked, holiday entitlement (prorated if applicable) and
daily allowance paid when mobilised offshore.
REFERENCE PERIODS August of the previous year through to July of current year
REGULAR ROTATION Employees who are assigned to a regular rotation and continue to follow
the assigned rotation.
TRADE UNIONS Trade unions who are signatory to the ESA
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APPENDIX 7: DEFINITIONS AND TERMINOLOGIES
SIGNATORIES All parties who are signatory to the ESA.
WORKFORCE
ENGAGEMENT FORUM
Quarterly forums where nominated trade union and employee
representatives will be invited to participate in discussions, activities and
to review documentation with all signatories to the ESA.
ADDITIONAL HOLIDAY
PAY
8
Employees who are on a fixed rotation and have fixed earning (i.e.,
earning are the same every week or monthly) will have any additional
holiday pay calculated using the previous 6 worked weeks as a reference
period.
Emp
loyees who have no fixed rotation or have variable earnings, (i.e.,
earnings vary on a weekly or monthly basis) will have any additional
holiday pay calculated using the previous 52 worked weeks as a reference
period.
8
34 | P a g e
A.8
Appendix 8: Version Control
9
APPENDIX 8: VERSION CONTROL
Date Change
Number
Change made When and where agreed
17/05/21
1
Date RAM to be calculated changed to end August to accommodate publication of CPI%
- 3
rd
Wednesday of each month. Both ESA section 1.3.2 and Appendix 4 Rate Adjustment
Mechanism.
13 May 2021 via Workforce
Engagement Forum
17/05/21
2
Amendment to job title for David Stewart – Wood, Appendix 1 ESA Signatories 13 May 2021 via Workforce
Engagement Forum
17/05/21
3
Fire and Gas Technician added to list of disciplines within Appendix 2 Grades and
Disciplines.
13 May 2021 via Workforce
Engagement Forum
17/05/21
4
Appendix 3 Schedule of Rates, Overtime rate for Grades 2,3 and 4 updated due to error
in previous calculation
13 May 2021 via Workforce
Engagement Forum
17/05/21
5
Date RAM to be calculated changed to end August to accommodate publication of CPI%
- 3
rd
Wednesday of each month. Both ESA section 1.3.2 and Appendix 4 Rate Adjustment
Mechanism.
13 May 2021 via Workforce
Engagement Forum
17/05/21
6
Appendix 5 Payment Scenario Matrix, update to scenario 4, to include payment at
offshore date rate for each delay against Permanent Retained Contract model
13 May 2021 via Workforce
Engagement Forum
17/05/21
7
Appendix 5 Payment Scenario Matrix, update to scenario 5, to include payment at
offshore date rate for each delay against Permanent Retained Contract model
13 May 2021 via Workforce
Engagement Forum
17/05/21
8
Clarification added to Appendix 7 Definitions and Terminologies, relating to reference
periods for calculation of Additional Holiday Pay
13 May 2021 via Workforce
Engagement Forum
17/05/21
9
Introduction of Appendix 8 Version Control, to capture any changes to ESA document
and Appendix 1-7.
13 May 2021 via Workforce
Engagement Forum
9
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APPENDIX 8: VERSION CONTROL
9/11/21 10
Crane Mechanic/Operator job title corrected within list of disciplines within Appendix 2
Grades and Disciplines.
25 August 2021 via
Workforce Engagement
Forum
09/11/21 11 Hyperlinks added to job titles that link direct to connected competence role profiles. 25 August 2021 via
Workforce Engagement
Forum
22/12/21 12 Appendix 3 Schedule of Rates updated with 2022 rates 17 November 2021 via
Workforce Engagement
Forum
24/02/22 13 Name change – reference to OGUK updated to OEUK to reflect name change effective 14
February 2022
23
February 2022 via
Workforce Engagement
Forum
15/03/2022 14 Name change – Appendix 1 ESA Signatories, Muehlhan updated to Altrad Energy Support
Services Ltd to reflect purchase of Muehlhan UK by Altrad Services Ltd effective 1 January
2022
23
February 2022 via
Workforce Engagement
Forum and signed
confirmation from AESS
Ltd.
30/06/2022 15 Appendix 3 Schedule of Rates updated with increase applied from 1 July 2022. 15 June 2022 by ESA
Signatories
01/01/2023 16 Updates
made to capture changes to Allowances effective 1 November 2022 as agreed by
all ESA Signatories
01 November 2022 by
all ESA Signatories
30/01/2023 17 Advised to update Brand Energy & Infrastructure Services ESA director representative to
David Strang as John Simpson will no longer have responsibility.
Advised to update Brian Mercer to David Hutchinson for Semco Maritime
Email received from
Signatory companies to
advise of change
oeuk.org.uk/energy-services-agreement
© 2023 The UK Oshore Energies Association Limited
(trading as Oshore Energies UK)