Head scratcher

Can someone read and interpret this article for me?

http://www.worldenergynews.com/news/cutting-contractor-rates-can-safeguard-the-industry-605447  

http://www.worldenergynews.com/news/cutting-contractor-rates-can-safeguard-the-industry-605447

(I've tried that two ways.   Looks OK in the editor.      No clue. If you are interested, copy the URL into your browser...)

Yet more scum 'safeguarding' the industry.   'As a whole' no doubt.  Straight from the pages of Atlas Shrugged.

My exposure to business types and their view of economics is clearly lacking some important feature.

So Oil and Gas is currently in a labor shortage market, unable to find enough qualified engineers. They are thus dependent on contractors (translated: engineers who have figured out what they are really worth to these group efforts.) The solution to this economic market condition is to convince competing firms to all lower contractor rates by 10%.

Anyone exposed to the 'New Economics' who could explain that one to me?

In the old days, that would just be called 'collusion.' What is it called today?

Oh wait a minute; I get it. By colluding to lower rates to 'contractors', they plan to convince more 'contractors' to work for idiots for much lower W2 wages.   As long as they get away with collusion, this could work to 'save' the industry.   Just need to figure out a way to dictate to the Nerds what their rates whould be without regard to the market price.

So lets get this straight. Some nerd spent his college days grinding away through an engineering curriculum while some business major played beer pong with his frat brothers, before Dad set him up in business, but still, that stats course was really, really hard, and he mastered the fine art of Excel jockeying and doesn't like to see those big cost numbers to run what he tells everyone is a technology company in oil and gas. So he and his ex frat brothers and their Dads need to figure out a way to FUD the nerds into working for them for peanuts, even if that requires collusion to make it happen, because paying market price isn't in their future.

Have I significantly miss-characterized any of this story in any meaningful way?

So Nerds, I got to wonder; why would you ever fall for this nonsense from these lightweights?

Ever?

Don't expect much help from the Tribe, worried about this instance of collusion; they are largely perfectly happy with IRS 1706. 

regards,

Fred

“The Oil and Gas market is a contractor driven sector, so this rate cut is intended to lower the cost base for companies by a significant margin – however the underlying theme is also to attract more people into staff positions. This works on both a financial level but also by promoting more sustainable jobs and curbing the rate spiral that inevitably exists in a candidate shortage market.

There is a fucking euphemism for 'collusion.'    In the brave, new world, this is called 'attracting.'   Love the wording: "base cost" and "sustainable."  

Note to Nerds; they need you more than you need them.  Don't cave.   Tell all those fucking grossly overpaid management and their shareholders to go crack a calculus book if they are nervous about "base costs."

This is the UK, of Brain Drain fame.    But, no American tolerating IRS 1706 should be much looking down on the socialist Limeys.

regards,

Fred

“We face an acute squeeze specifically within the technical engineering side of the sector. When this happens, candidates become an in demand commodity and to a certain extent have an ability to dictate their own rates. If other companies were to follow the example of Wood Group PSN, this significant margin saving financial move would create a more sustainable jobs market and ensure another piece of the future energy puzzle can be put into place.” adds Cookson.  

His comments are backed up as Matchtech’s joint research project conducted with the Institute of Marine Engineering, Science and Technology (IMarEST). It revealed that 90% of the 500 Maritime and Oil & Gas employers surveyed are currently struggling to recruit professional engineers. It led to an industry roundtable event at London International Shipping Week and the ‘Mitigating the Skills Gap within the Maritime and Oil & Gas industry’ report, containing 16 recommendations across industry perception, education initiatives and creating opportunities to engage a wider existing engineering talent base.

???

There is high technological demand because of the need for more exotic recovery schemes, for one thing.   The Big Five's profits were 'down' to only 93Billion or something recently; they can't afford to buy the technology they need to keep the gig going?   Or they are used to making huge profits by phoning it in?

This is an open plea above to collude and price fix.  They want to 'engage' a wider talent base...not by paying them, but by paying them less, and shepherding them towards lower paid 'staff' positions.   

This open agression is straight out of Atlas Shrugged.   Appeals to eat a few, in order to save the industry 'as a whole.'

I say, fuck the industry as a whole, if that is widely practiced.    Forced association is ugly in all its forms, not just the politically abusable forms sellable by the race whores.

Don't like the contractor's price?   Don't pay it.   But when did collusion come back into vogue?   If those contractors rates are not worth it to any clients, they won't pay them.  They will lower their rates, or they won't work.  That is the free market, without collusion.

If there really is a demand, this appeal for open collusion will surely fail.   So what is behind it?   What kind of human mind writes those articles?   They share this earth with us.

regards,

Fred

Lol years ago up in Northern Alberta one exec did not like the bids that went in for his project.  After all the bids he informed everyone he was not happy with the results.  Every single contractor resubmitted and jacked their prices by 50%.  They were all tired of this asshole and there was more work out there than they could handle anyways and this prick knew it.   He was forced of course to accept the higher bids and I believe recieved a rather large reprimand for stirring up a hornets nest.  

This same asshat tried screwing us out of travel time one day after we got him out of a major bind.  The next three times I replied "sorry I'm too busy."  He called again.  I replied " we can make ourselves (not busy) if you pay us for the full time it takes plus the four hours travel you screwed us out of last time.  He agreed. Lol

(Edited by Jules Troy on 6/03, 10:38pm)