Wireline Magazine Issue 50 - Spring 2021

Each of these will align with the Scottish Government’s Fair Work principles. The Travel, Accommodation and Expenses and Training, Competence and Development codes are both directly linked to the ESA and are nearly complete. The remaining three are currently under development with the Productivity, Performance and Delivery of Service code the current priority. Once developed these codes will underpin the ethos of what the ESA is hoping to achieve. At the heart of the agreement is engagement with the offshore workforce. We are keen to make sure that we capture the views of the people who are covered by the agreement and to incorporate this information in our future planning. Engagement sessions with representatives from ESA employer companies, the trade unions, and the workforce via their representatives take place on a quarterly basis. If you would like to find out more about the ESA, please contact the team at ESA@oilandgasuk.co.uk.

determine their own terms and conditions, but they should be no less than those guaranteed by the ESA. Arguably the biggest innovation in the agreement is the Rate Adjustment Mechanism (RAM), which replaces lengthy and often adversarial pay negotiations with a formula based on both inflation (CPI) and oil and gas prices (CPA). As well as releasing valuable time for more value-adding activities and discussions, the RAM gives transparency for all stakeholders of forthcoming rate changes, which will help companies budget and avoid the difficulties of backdating pay changes, something which impacts all stakeholders. The agreement will be underpinned by five Industry Codes of Practice: 1) Travel, Accommodation and Expenses 2) Training, Competence and Development 3) Workforce Engagement and Trade Union Representation 4) Health, Safety and Wellbeing 5) Productivity, Performance and Delivery of Service

Credit: istock.com/ francisblack

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