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This paper examines the problems involved in developing collective bargaining in the traditionally non‐union environment of the strategically important UK offshore oil industry. In doing so it provides evidence on the success of the “new”, stakeholder industrial relations environment established by the present UK government. Drawing on an in‐depth insight into management and union strategies gained from action research, the paper documents the attempt to establish a collective agreement and a partnership approach to industrial relations in the drilling sector of the North Sea offshore oil industry, a sector which has had no previous history of unionisation. In doing the research provides evidence partnership policy, the literature on union recognition and the process of negotiation in international organisations.

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