Union Warns of Job Losses in Labour's North Sea Oil Ban Plan

The Labour Party's plan to prohibit new North Sea oil and gas licences has sparked concern among unions, with fears of substantial job losses in the energy sector. The Unite union, one of the UK's largest, has voiced strong opposition to the proposal, drawing parallels to the devastating impact of coal mine closures in the 1980s and 1990s.

The North Sea oil and gas industry, which began in the 1960s and has since produced over 40 billion barrels of oil equivalent, currently supports approximately 200,000 jobs. This sector has been a significant contributor to the UK economy, with £8.8 billion in taxes paid in the 2022-23 fiscal year.

Unite's motion, set to be debated at the upcoming Trades Union Congress, expresses dismay at what it terms an "arbitrary target" to cease North Sea drilling. The union argues that abandoning fossil fuels without a clear replacement plan and job protection measures could lead to energy workers becoming the "miners of net zero."

The union's concerns stem from the potential loss of over 30,000 offshore jobs and up to 240,000 positions in the supply chain. Unite is calling for a guarantee of comparable jobs for all North Sea workers before any ban on new drilling licences is implemented, estimating the cost at £1.1 billion annually.

"We will not let them suffer the equivalent of the coal closures, which broke the back of mining towns across the UK."

It's worth noting that the UK's coal mining industry, which employed over 1 million people at its peak in the 1920s, saw its last deep coal mine close in 2015. This historical context underscores the unions' concerns about the potential socio-economic impact of rapid changes in the energy sector.

While acknowledging the systemic risk climate change poses to working-class communities, Unite argues that geopolitical tensions necessitate a cautious approach to phasing out fossil fuels. This stance aligns with the UK's commitment to reaching net-zero emissions by 2050, a target that requires balancing environmental goals with economic considerations.

The GMB union has also entered the debate, urging the government to consider the gas industry's importance in powering UK manufacturing and heating 22 million homes. They advocate for an industrial strategy that maximizes domestic energy strengths, including nuclear, renewables, and oil and gas production.

As the UK continues to lead in renewable energy, with 43% of its electricity coming from renewable sources in 2020 and its position as the world's largest offshore wind market, the transition away from fossil fuels remains a complex issue. The debate at the Trades Union Congress will likely focus on finding a balance between environmental goals and protecting workers' livelihoods in the evolving energy landscape.