Thousands of Baker Hughes employees across Aberdeen, Peterhead, and Montrose are facing the threat of redundancy unless they accept significant cuts to their pension contributions. The energy technology giant has issued formal advance redundancy notices to more than 4,500 staff in the north east of Scotland, as it seeks to reduce employer pension contributions by up to 25% for nearly all current employees.
A Baker Hughes spokesperson commented:
“Baker Hughes regularly reviews its global benefit offerings to ensure that we remain an employer of choice, while also maintaining sustainable business practices. In the wake of a review that began in 2024, the company recently communicated an upcoming proposed change in pension plans which would align with the current offering to new hires in the UK from 1st August 2024.
These plans would keep Baker Hughes within the top 25% of employers in the UK in terms of pension contributions. The HR1 form is statutorily required by the UK government. It was part of a broader communications package to our employees. This communications package provided additional context and background on this proposal.”
One worker, who asked to remain anonymous due to fear of reprisals, said:
“Essentially the business is looking to impose a 25% reduction in pension contributions under an excessive timeline, which currently is legal, but looks to be timed just before the amendment of the employee rights bill that would outlaw this practice. Too often oil and gas workers of the UK are forgotten about, and need to be vocal.”
The proposed changes would come into effect from 1 January 2026.
If agreement is not reached, Baker Hughes may carry out a “dismiss and re-engage” process—commonly known as fire-and-rehire—where employees are made redundant and rehired on new, less favourable terms.
The company’s sites in Aberdeen, Montrose, Peterhead, and Dyce are among those affected.
The 60-day consultation period for the proposed changes is longer than the statutory minimum, but there is no union recognition agreement in place, meaning elected employees will represent the workforce in the collective consultation process.
The pension cuts proposal comes just weeks after Baker Hughes completed a £900 million buy-in deal, securing pensions for over 7,000 retired and deferred members across three legacy schemes.
