Oil Workers Strike Over Shell's Proposed Cuts

LONDON—About 400 workers at seven Royal Dutch Shell PLC oil and gas platforms in the U.K. North Sea began a 24-hour strike early Tuesday in a dispute over proposed cuts of up to 30% on pay and allowances, the Unite union said in a news release.

The strike will be followed by a series of other stoppages over the following weeks, Unite said.

Production won't be affected by the strike because the platforms are undergoing maintenance, Shell said.

The workers are employed Wood Group PLC, an oil-field services company contracted by Shell.

A Shell spokesman said the strike action was "highly regrettable" and "counterproductive." He said the workers had a right to strike but said "structural change is needed" in the North Sea oil and gas industry, where the costs are among the highest in the world.

Oil service companies have slashed jobs across the world following the fall in oil prices to around $47 a barrel from over $100 in mid-2014.

Wood Group said it was disappointed about the strike.

"Our firm focus remains on reaching a resolution," said Dave Stewart, Wood Group's CEO for its eastern region business unit.

Write to Selina Williams at selina.williams@wsj.com

(END) Dow Jones Newswires

July 26, 2016 10:15 ET (14:15 GMT)

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