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

People & Company News

ClassNK Holds LNG Fuel Technologies Seminars

ClassNk held LNG-Fuelled Vessel Technologies seminars in Shanghai and Singapore on 22 July and 24, July 2014, respectively. With the industry looking to adopt

USCG Change of Command in Galveston

A Coast Guard lieutenant commander and graduate of Hastings High School in Houston, took command of Maritime Safety and Security Team Galveston during a ceremony in Galveston Thursday.

Miller Rejoins TITAN as Salvage Master

Captain Stuart Miller has rejoined Crowley Maritime Corporation’s TITAN Salvage operations team as salvage master, bringing with him over 30 years of worldwide,

Offshore

Study: An Arctic Oil Well Blowout Could Spread More Than 1,000km

Oil from a spill or oil well blowout in the Arctic waters of Canada's Beaufort Sea could easily become trapped in sea ice and potentially spread more than 1,000 kilometres to the west coast of Alaska,

Westermeerwind Wind Farm Construction Begins

Mammoet announced today that Westermeerwind BV has reached financial close on July 25 for the turnkey construction of the Westermeerwind wind farm in Ijsselmeer,

Gas Prices Help Offset Statoil's Output Drop

Statoil's second quarter 2014 net operating income was NOK 32 billion, a decrease of NOK 2.3 billion compared to the second quarter of 2013. Adjusted earnings were NOK 32.

Finance

Canal Project Slows Panama Economy Growth

Panama's economy expanded in May at its slowest pace since 2009 as major public works projects, including an expansion of the Panama Canal, slowed or wrapped up,

Gas Prices Help Offset Statoil's Output Drop

Statoil's second quarter 2014 net operating income was NOK 32 billion, a decrease of NOK 2.3 billion compared to the second quarter of 2013. Adjusted earnings were NOK 32.

Asia VLCC Rates Could Nudge Higher on Activity

Rates for very large crude carriers (VLCCs) on key Asian freight routes could hold steady or gain next week as charterers seek to complete their vessel chartering

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pipelines Port Authority Ship Repair Ship Simulators Sonar Winch
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: 0.1445 sec (7 req/sec)