More than 1,000 Scots workers could lose jobs unless they accept pension cuts
PENSION ROW More than 1,000 Scots workers could lose jobs unless they accept pension cuts
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MORE than 1,000 oil and gas workers in Scotland have been hit with a brutal ultimatum — accept a pension cut or face the axe.
Energy giant Baker Hughes has slapped thousands of its UK staff with redundancy warnings, as it pushes through a controversial shake-up of pension terms.
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Former Prime Minister Rishi Sunak visits the Baker Hughes Subsea Centre of Excellence in Montrose with then- Secretary of State for Scotland, Alister Jack.
Credit: PA
The US-based company — a major player in Aberdeen's oil and gas sector — has handed out formal redundancy notices to over 4,500 employees in what's being branded a 'fire and rehire" threat.
Sources say bosses have warned employees that if they don't agree, the company might go down the 'dismiss and re-engage' route — a legal, but controversial tactic due to be clamped down on by new UK laws.
An insider told the Press and Journal: 'Essentially the business is looking to impose a 25% reduction in pension contributions under an excessive timeline, which currently is legal, but looks to be timed just before the amendment of the employee rights bill that would outlaw this practice.
'Too often oil and gas workers of the UK are forgotten about, and need to be vocal'.
Newer workers who joined after 1 August 2024 already face lower pension terms and won't be affected by the latest move.
But others could be hit hard from 1 January 2026, unless a deal is struck.
Baker Hughes runs key hubs in Montrose, Portlethen, Peterhead, and Dyce, with its UK headquarters in Aberdeen, managing operations as far as Norway and the Caspian.
To add fuel to the fire, the row comes just weeks after the firm sealed a £900 million pension deal to protect payouts for over 7,000 retired staff.
A Baker Hughes spokesperson said: 'Baker Hughes regularly reviews its global benefit offerings to ensure that we remain an employer of choice, while also maintaining sustainable business practices.
"In the wake of a review that began in 2024, the company recently communicated an upcoming proposed change in pension plans which would align with the current offering to new hires in the UK from 1st August 2024.
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"These plans would keep Baker Hughes within the top 25% of employers in the UK in terms of pension contributions.
"The HR1 form is statutorily required by the UK government.
"It was part of a broader communications package to our employees.
"This communications package provided additional context and background on this proposal.'
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