ENGINEERING company Wood Group PSN (WGPSN) will cut contractor wages by as much as 15 per cent from March as the group adjusts to lower oil prices.

The company will also employ a salary freeze for all WGPSN offshore and onshore employees in Australia, though employees covered by current enterprise agreements will not be directly impacted.

The changes come three months after the company cut rates for contractors based in the UK North Sea by 10 per cent, citing the same reasons.

WGPSN managing director for Australia and the Asia Pacific Andrew Stewart said the decision had been made in response to the cost and efficiency challenges being faced by the sector globally.

“The safety of our people and the assurance of everything we design, construct, operate and maintain remains our top priority,” he said.

“We are taking measures to ensure we lead the market correction, reduce costs, drive value for our customers and play our part in safeguarding the long-term health of the industry.”

The company carries out work for Woodside Petroleum in Western Australia at the project’s Karratha gas plant.

Woodside also instituted a pay freeze in March alongside the announcement that it would make up to 300 roles redundant following a review of its business.