Pay cut due to the economic downturn. Why?

[zincanode]

The pay cuts are now hitting the onshore bods as well. During the last month, onshore management at Aker & Saipem have been hit with a 10% pay cut. For some that’ll bring them under the new £150K upper tax limit, so there will be a silver lining somewhere.

What hacks me off is the standard of most of the decision making. In one case I was rerouted back to UK from India and had two extra plane changes to save the company a £150 – I missed a connection in Bahrain so I arrived home the next day and it cost the company an extra day…me tired and irritable, and the company out of pocket. Seems to be a job creation thing…letting people who have never travelled organise your flights.

😯

[DJansen]

Yes funny how the office ‘travel consultant’ has never seen a World Atlas or has a scooby doo about connecting flights and which airlines are good..

Their golden rule is Never book an ‘expensive’ direct flight and get your crew there quickly if the scenic route two day five stop option is available

[Scott Beveridge]

Yessssss….. more cost- cutting / efficient accounting …. mind you, in the ME, the wallie-agents do a fine job of messing up any/all crew changes on there own… They don’t need a company orifice wallie to farq-up for them as they’re experts at it…

[De-mob]

Cost cutting on flights/travel is normal practice as we know. If they can get you out to a job well fatigued and straight on shift then job done. After all you do get well paid for the inconvenience…ha ha. No regard for the safety aspect either, aslong as you have hard hat, coveralls and speks on when you injure yourself or your collegue no worries.

I have watched homeward bound Rov guys get picked up and taken straight to the AP after shift, while other depts have gone to hotels. I remember a guy on a job with me years ago killed in a crash due to driving home fatigued….Strange how we are treated.
I wonder if it’s because we are toothless in regards to bargaining power??? No it can’t be!

Most crew changes are paid for by the oil companies, and this is written into the majority of contracts, so why do companies cream off this aswell and cut the rate for travel days.

It’s all obvious guys!!!

[Savante]

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article6189943.ece

This is why I fear !!

[Anonymous]

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article6189943.ece

This is why I fear !!

Profit is profit, oil companies can have a good life with oil prices around 60/65 Dollar.

Oil demand to pick up in 2010

[James McLauchlan]

Shell follows BP with 62% profits plunge

I’m not being drawn in by that one. It’s too obvious to be true.
Of course they will see a 60% profit plunge… in the last 6 month or so the barrel has dropped well over 60% and it’s nothing to do with the recession either. That’s where this so called ‘profit plunge’ is coming from

They are comparing this years first quarter income with the previous years record high when oil was +$100/barrel.

Of course they will see a massive drop in profits when compared to 2008, but look back a year or so further (2006/2007) and it doesn’t look half as bad.

2008 prices were speculative and we all know that. Today’s prices are more realistic, but are certainly not signs of the industry suffering.

The current price is still nigh on double what it settled at for some time prior to 2008 when the industry still seemed fairly healthy and good profits were still being made.

[DJansen]

Yes funny how they try to spin the ‘massive drop in profits’

They always fail to mention that only a few years back they were happy with 25 bucks a barrel..

Comt to think of it I remember one field I worked on that had be developed on the huge sum of 8 dollars a barrel.. I can also remember the Client being cock a hoop at ‘first oil’ cos the price by then was 14 dollars.. Now 15 yrs later the same field is still producing happily at 50 bucks and last year they were making bacon at 100+.. Oh and did I mention that all the expensive expat staff have been replaced by ‘nationals’ on a pittance.. Yep it’s tough for the oil majors…

[JL Schnabel]

Shell follows BP with 62% profits plunge

I’m not being drawn in by that one. It’s too obvious to be true.
Of course they will see a 60% profit plunge… in the last 6 month or so the barrel has dropped well over 60% and it’s nothing to do with the recession either. That’s where this so called ‘profit plunge’ is coming from

They are comparing this years first quarter income with the previous years record high when oil was +$100/barrel.

Of course they will see a massive drop in profits when compared to 2008, but look back a year or so further (2006/2007) and it doesn’t look half as bad.

2008 prices were speculative and we all know that. Today’s prices are more realistic, but are certainly not signs of the industry suffering.

The current price is still nigh on double what it settled at for some time prior to 2008 when the industry still seemed fairly healthy and good profits were still being made.

Very well said James. ❗ ❗

[JL Schnabel]

Cost cutting on flights/travel is normal practice as we know. If they can get you out to a job well fatigued and straight on shift then job done. After all you do get well paid for the inconvenience…ha ha. No regard for the safety aspect either, aslong as you have hard hat, coveralls and speks on when you injure yourself or your collegue no worries.

I have watched homeward bound Rov guys get picked up and taken straight to the AP after shift, while other depts have gone to hotels. I remember a guy on a job with me years ago killed in a crash due to driving home fatigued….Strange how we are treated.
I wonder if it’s because we are toothless in regards to bargaining power??? No it can’t be!

Most crew changes are paid for by the oil companies, and this is written into the majority of contracts, so why do companies cream off this aswell and cut the rate for travel days.

It’s all obvious guys!!!

Yes, Oceaneering call it ‘mobilisation fee’… the client pays for the round.trip and accommodation; so what is the big deal after all with the booking / routing of flights ❓

It’s on the client and not on the agencies or 3rd party ❗

[sedco]

I believe the mob fee is a lump sum cost to the client so if the ROV company can get you home for less they pocket the difference.

It’s not personal, it’s just business. You decide who you want to do business with.

[DJansen]

What about when the client specifically pays for business class seats due to the length of the flight but the office books economy and pockets the difference… Happened to me once and the orifice got found out by the client.. was a sight to behold.. 🙂

[Anonymous]

Technip Boosts Quarterly Profit 10%

http://www.bloomberg.com/apps/news?pid=20601207&sid=aOwegMG8ryUk&refer=energy

Oceaneering announces record first quarter earnings

http://www.ronsrovlinks.nl/modules/impression/singlearticle.php?cid=3&aid=2702

[De-mob]

It’s not personal, it’s just business. You decide who you want to do business with.

So it is true then! Safety does play second fiddle to cost/profit as far as business ethics go…. How stupid of me to think otherwise.

Don’t forget your PPE guys!

[James McLauchlan]

Oceaneering International, Inc. (NYSE:OII) today reported record first quarter earnings for the period ended March 31, 2009.

On revenue of $435 million, Oceaneering generated net income of $44.3 million, or $0.80 per share.

During the corresponding period in 2008, Oceaneering reported revenue of $436 million and net income of $41.3 million, or $0.73 per share as restated.

Year-over-year, quarterly earnings increased due to growth in Remotely Operated Vehicles (ROV) and Subsea Projects operating profits.

Sooooooo………..

Pay cut due to the economic downturn. Why?

[Author]

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