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Energy Services Agreement celebrates its first year of operation

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02/28/2022

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

The ESA is a collective agreement in which signatory companies commit to creating a safe, productive and engaged workforce in their fields of activity. Employer and union signatories take the lead in setting the standard for employee relations across the offshore energy industry.


After a successful first year of operation, ESA has:

  • Bring 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 unions.
  • Reduced complexity and increased transparency between all stakeholders, by focusing payment on the time worked.
  • Transformed the annual negotiation process, which saw a 97% reduction in hours spent conducting the annual review, by introducing a standardized process.

Progress in its first year will allow ESA signatories to dedicate 2022 to expanding the agreement. By attracting more employers to the list of signatories and, in turn, further strengthening employee engagement, ensuring that the workforce has a voice as the energy industry offshore is evolving.

“The commitment of all ESA signatories to work together has made it possible to deal with the issues quickly, without the need to escalate them further,” said Irene Bruce, Head of OEUK ESA. “I am proud to lead the further development of ESA and look forward to talking to other companies who want to work with us to take the lead and challenge the future together.”

ESA’s first anniversary should serve as proof that where the will to embrace collaborative working exists, it will produce significant returns, said a comment on behalf of the three signatory union representatives. Labor engagement continues to be a cornerstone of the agreement and increasing the network of labor representatives will further enhance this, according to the commentary.
“The establishment of the Energy Services Agreement was a pivotal moment in the evolution of the UK’s North Sea, ensuring that those who keep critical energy flowing safely and reliably are positively engaged. and supported by the companies they work for,” said Craig Shanaghey, president of operations. across Europe, the Middle East and Africa at ESA signatory Wood. “Watching ESA celebrate its first anniversary and progress through its inaugural round of salary reviews has proven the value of this agreement – ​​ensuring the transparent, fair and timely application of salary increases, 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.