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Growth in Offshore Expansion Brings Wage Pressure

July 19, 2012


As the offshore sector continues expanding internationally, higher salaries are being paid to employees. This puts wage pressure on other industry segments such as classification societies and port state administrations. The increase in demand for specialists in the offshore sector is the main reason for the widening wage gap with other parts of the industry, since government employers fix many of the salaries.

Europe’s offshore expertise may be in short supply if more is not done to create higher stability between the specialists and offshore industry workers. Since many EU nationals’ salaries are being undercut by other employers outside of the EU, many personnel will be less attracted to working as surveyors in classification societies. Many of the international crews are more cost-competitive, making many of the EU participants in the offshore market face the potential to be out priced.

“We are obviously in favor of an international workforce,” says Spinnaker Business Development Director Teresa Peacock. “Some of our clients have raised concerns that a plentiful supply of lower cost crew may jeopardize the EU’s ability to provide skilled personnel for the offshore sector in the future.”

This issue does not just face the industry as a whole, but also an issue for each country individually. Employers with greater finances must cooperate with the industry so that it does not hurt the industry as a whole. The ability for EU employees to compete in a demanding international environment will be key for the EU to keep up with their experienced workforce in the future.

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