Offshore Expansion: With Growth Comes Wage Pressure

(MarineLink)
Tuesday, July 17, 2012

Higher salaries paid in the expanding offshore sector are putting wage pressure on other industry segments like classification societies and port state administrations, employment consultant Spinnaker Consulting says.
“With demand for personnel continuing to grow in the offshore sector, the wage gap has widened with other parts of the industry, who may in some cases only be able to offer salaries that are fixed by government employers,” says Spinnaker Chairman Phil Parry. “We are seeing far greater demand for specialists in offshore roles and, rather like the demand surge in the bulk markets in the middle of the last decade, it is beginning to suck staff from other types of employer.”
Having said that, Parry warns that in Europe offshore expertise may itself be in short supply if more is not done in the future to provide a level playing field for offshore industry workers.
“While the offshore sector may be paying higher salaries for certain personnel, which means they may be less attracted to, for example, working as surveyors in classification societies, the offshore sector faces its own challenges as EU nationals’ salaries are being undercut by entrants from outside the European Union,” he explains.
The availability of crews who are more cost-competitive, for example to man the expanding offshore supply vessel fleet, could lead to EU participants in the offshore market being priced out.
“We are obviously in favour of an international workforce,” says Spinnaker Business Development Director Teresa Peacock.  “Shipping is after all an international industry, but some of our clients have raised concerns that a plentiful supply of lower cost crew may jeopardise the EU’s ability to provide skilled personnel for the offshore sector in the future.  Again, it’s starting to sound very much like the story in the bulk markets.”
“This is an issue, not only of supporting the industry as a whole, but ensuring that individual countries, wherever they are based geographically, have a stable skills base to rely on.  It requires employers with the finances and the foresight to play the long game.”
“With the expansion of deep drilling on an international basis, the ability of EU employees to compete in a demanding international environment will be key to the EU’s ability to maintain an experienced workforce for this sector going forward,” Parry says.

 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Prime Minister Solberg Visits DNV GL

Norway’s Prime Minister Erna Solberg visited DNV GL Høvik yesterday, September 16. Group President & CEO Henrik Madsen was host. “The Prime Minister was both

MARAD to Mark the Return of MV Cape Ray

Maritime (MARAD) Administrator Paul N. Jaenichen will host a ceremony on Friday, September 19, 2014 in Portsmouth, Va. to honor the civilian crew who helped to

Houston Shipping and Offshore Conference Program Announced

The fourth Houston Shipping and Offshore Conference has announced the final program for its Friday, October 10 conference at the Houstonian Hotel, Club & Spa, 111 N.

Offshore

Houston Shipping and Offshore Conference Program Announced

The fourth Houston Shipping and Offshore Conference has announced the final program for its Friday, October 10 conference at the Houstonian Hotel, Club & Spa, 111 N.

EMS Seven Seas Announces New CEO

EMS Seven Seas announces new CEO; enters into agreement to acquire Wave Shipping, a Singapore-based maritime and port agency services company. EMS Seven Seas,

iSURVEY Awarded Two-year Contract with Island Offshore

iSURVEY has been awarded a two-year contract with offshore vessel owner, Island Offshore Management, which will see iSURVEY AS provide positioning services to Island

Finance

Houston Shipping and Offshore Conference Program Announced

The fourth Houston Shipping and Offshore Conference has announced the final program for its Friday, October 10 conference at the Houstonian Hotel, Club & Spa, 111 N.

For Europe's LNG Ports, Russia Gas Fears and US Exporters Buoy Demand

Gas buyers nervous of Russia cutting supply are helping solve Europe's problem of too many underused liquefied natural gas (LNG) terminals, as they seek space at France's Dunkirk plant.

Statoil: COSL Pioneer Temporarily Suspended

Due to overcapacity in their rig portfolio, Statoil will lay up the COSL Pioneer rig in the fourth quarter of 2014. The rig is currently carrying out an assignment

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1746 sec (6 req/sec)