Canadian Oil and Gas Companies to Remove Employee Benefits to Cut Costs
Bloomberg reported that after cutting thousands of jobs and scrapping projects, Canadian energy companies are taking further cost-cutting measures by removing employee perks.
Bloomberg reported that after cutting thousands of jobs and scrapping projects, Canadian energy companies are taking further cost-cutting measures by removing employee perks.
As quoted in the market news:
Holiday parties, childcare benefits and Fridays off are being targeted as the rout in crude prices grinds into its 16th month, workers and company representatives say. The clampdown on perks comes as firms dig deeper for savings after eliminating about 36,000 oil and natural gas jobs in the crash, according to a tally by the Canadian Association of Petroleum Producers.
At Canadian Natural Resources Ltd.’s office in Aberdeen, Scotland, the only microwave is in overdrive after the cafeteria stopped serving hot meals and raised the price of sandwiches. The coffee cups are smaller, too. While the company has avoided job cuts, salary reductions of as much as 10 percent mean some workers are also earning less.
ConocoPhillips, which is cutting 500 workers in Canada this year, removed complimentary juice and soda from fridges in Calgary and canceled personal development benefits of as much as C$1,500 ($1,153) a year that some employees used for sports training.
