Re-tendering Hibernia contracts stressing workers, says union

An unprecedented overhaul of Hibernia contracts is creating widespread uncertainty among workers, and exposing a serious shortcoming in the Atlantic Accord, says the union representing employees on the iconic oil platform.

"What we don't understand is why somebody after 18 years out there that their jobs are just up for grabs. They're just saying 'sorry, we can replace you,'" Tom Kennedy, president of Unifor Local 2121, told CBC News Tuesday.

There are 16 contractors providing services on Hibernia, and most of those contracts are being re-tendered as the oil companies that own the project look to find efficiencies in the face of a prolonged slump in oil prices.

Long-serving employees have no guarantees

Unifor represents roughly 500 employees on Hibernia, most of whom work for private contractors.

But as those contracts are awarded to new companies, employees have to compete for their jobs, and in some cases, they are losing out.

Kennedy said only 36 of the 50 people working in catering and accommodations got their jobs back after the contract changed hands recently.

The crucial drilling contract was also awarded to a different company this month, and roughly 100 people who worked for Paragon Offshore face an uncertain future as Parker Drilling prepares to take over.

"It's totally dependent on the new company — who they hire and who they don't," said Kennedy.

'Nobody feels safe'

Hibernia is also requesting bids for the important engineering, procurement, construction and maintenance contract, which is currently held by Wood Group PSN.

"Nobody feels safe anymore," said a Hibernia worker who contacted CBC News this week and spoke on the condition that his name not be published.

Lana Payne, Atlantic regional director for Unifor, blames the uncertainty on a "loophole" in the Atlantic Accord, which says companies must give "first consideration" for training and employment to residents of Newfoundland and Labrador.

Payne said this term is ambiguous, and the union is lobbying the provincial government for changes to the Labour Relations Act to better protect local workers.

She said Ontario has legislation in place to protect workers in a specific sector of its economy, and she believes this province can do the same.

"We hope and expect they'll do what's right here," said Payne.

There are successor rights for workers if a company is sold, but the same protection does not apply when a contract is re-tendered, Payne explained.

"We were guaranteed under the Atlantic Accord, through the benefits plan, that qualified Newfoundlanders and Labradorians would have access to those jobs, and if they weren't qualified, that training would be provided. But that's not the case today," she said.

"Our people have been working on these rigs for two decades and there's no rationale why they should not continue to do so just because the company has decided we're going to deal with a different contractor."

Contractors being squeezed

Payne said non-unionized workers from Newfoundland and Labrador have also been squeezed out after jobs were "re-scoped" to create openings for workers from elsewhere.

In some cases, long-serving employees were forced to train their replacements, she said.

"You'd be hard-pressed to say that somebody who's been working out there 20 years is not qualified to do the same job just because the boss has changed," she said.

In the past, contracts were seamlessly "rolled over," creating a feeling of stability and consistency on the platform.

But Payne said that is no longer the case because oil companies are squeezing contractors hard in order to lower costs.

And with a surplus of oil workers throughout the world, Payne said companies are more tempted to relocate workers from elsewhere.

Meanwhile, the provincial government confirmed Wednesday it is reviewing a request from Unifor for changes to the Labour Relations Act.