A group of rig welders in northeastern British Columbia says they are standing down.
They added that they will no longer providing contract rig-welding services under existing terms as a new minimum welding rate takes effect September 1.
In a letter issued Monday, the Rig Welders of the North Peace Region said participating welders voted they could no longer continue providing contract welding services under the previous conditions after August 31.
The decision means welders who are part of the initiative will not be working for contractors that do not agree to the revised terms.
Under the new terms, participating welders will charge a minimum of $150 per hour for rig welding services.
Contractors will also be required to supply fuel for field and out-of-town work outside the agreed local service area through fuel cards, cardlock facilities, contractor fuel tanks or another mutually acceptable arrangement.
The group said the rate adjustment follows months of discussions with contractors and comes in response to increasing costs associated with operating welding rigs.
Following a majority vote, welders said they determined they could no longer continue operating under the existing compensation structure and would stop providing contract rig-welding services unless the new terms are accepted.
According to the letter, expenses including trucks, welding machines, insurance, repairs, maintenance, tools and equipment replacement have increased substantially, while contract welding rates have not kept pace.
Participating welders said they could no longer absorb those costs under the previous rate structure.
The welders acknowledged concerns raised by contractors regarding existing client agreements and work that had already been bid using previous rates.
However, they argued that the long-standing regional welding rate system has historically allowed contractors to accurately estimate welding costs when preparing bids and contracts.
Despite standing down from work under the old terms, the group emphasized that its goal is not to disrupt projects indefinitely.
“We want to continue working,” the letter states, noting that many welders have worked alongside local contractors for years, and in some cases decades.
The welders said they want to maintain those relationships while establishing rates that allow independent welding businesses to remain viable. The group said contractors were first notified of the pending increase on July 15.
The welders said they are prepared to return to work as soon as acceptable terms are in place and agreements reflecting the new rate have been reached.
The letter also points to similar discussions taking place in Alberta, where rig welders are reportedly pursuing increases to contract welding rates in several regions.
The North Peace welders say the issue is not unique to Fort St. John, arguing that higher operating costs are being felt across the industry and throughout Western Canada.
They added that ongoing rate discussions in Alberta could provide contractors on both sides of the provincial border with justification to seek updated rates from oil and gas clients.
Looking ahead, the group said it plans to review contract welding rates annually to account for inflation and changes in operating costs
The welders stressed that annual reviews would not automatically result in yearly increases but would provide a more predictable system for both contractors and welding businesses.
They also left open the possibility of interim reviews if costs such as fuel, insurance or equipment rise significantly between scheduled reviews.
The group is encouraging contractors willing to work under the revised terms to update agreements, onboarding documents and hiring packages to reflect the new $150-per-hour rate and fuel provisions.
The welders said they recognize contractors, welders and clients all depend on projects continuing, adding that they remain committed to reaching an agreement that allows work to resume while ensuring independent rig-welding businesses can continue operating and reinvesting in equipment.
“We believe an agreement can be reached, and we are prepared to get back to work as soon as acceptable terms are in place,” the group wrote.
-M. Popove CJDC-TV News
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