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Oil services firm Wood Group PSN has announced it is cutting rates paid to about a third of its UK contractor workforce.

The Aberdeen-based firm said pay rates would fall by an average of 9%.

This has been blamed on the "continuing cost and efficiency challenges affecting the UK North Sea oil and gas sector".

It is the third such move made by Wood Group PSN in the space of two years.

James Crawford, managing director of Wood Group PSN in the UK and Africa, said: "This is not a decision we have taken lightly, but we believe it is the right one to proactively meet the continuing cost and resourcing challenges affecting the UK North Sea oil and gas sector.

"Our focus and commitment remains on contributing to the industry's long-term sustainability.

"This adjustment to the rates we pay our UK contractors ensures we continue to be competitive within the marketplace.

"We highly value our contractors and this measure will allow us to sustain our relationship with these talented people, whilst taking appropriate measures to improve efficiency and reduce cost for our customers."

Trade union Unite warned a new wave of cuts to pay would "intensify a race to the bottom in employment standards across the UK Continental Shelf (UKCS)".

Unite regional officer John Boland said: "This is another blow for our members in the Wood Group who have already suffered cuts to their rates over the last two years.

"Our big fear is that this latest cut will spark another domino effect across offshore contractor firms, intensifying the pace of a race to the bottom on jobs, pay, skills and working-time."