Oil Workers Strike Averted in Norway

Published at 09:55AM - 20/06/16

Norwegian oil and gas employers have finally reached an agreement with oil workers, preventing a looming strike.

According to the Norwegian Oil and Gas Association, they have reached a collective wages settlement with workers employed in offshore supply bases.

“Although we would have preferred to secure acceptance for more of our demands for changes to the agreement, we are pleased that a consensus could be achieved”, Norwegian Oil and Gas Association Chief Negotiator, Jan Hodneland, said.

Oil Workers Strike Averted in Norway

According to Hodneland, the framework for this settlement will protect the profitability and flexibility of the companies at a demanding time.

However, it was agreed that no general pay rise will be given. As well as this, minor adjustments will be made to the rates for minimum pay and subsistence allowances as well as to decentralised funds.

Industri Energi Staff During Wage Talks
Industri Energi Staff During Wage Talks

Some demanding issues have not been agreed upon and will be discussed by the employers and unions in a separate committee, like shift allowances and travel provisions.

Mediation Follows Rough Path

The mediation between the Norwegian Oil and Gas Association and the Norwegian Union of Industry and Energy Workers (Industry Energy), conducted on June 16 and 17, follows talks that had broken down between the parties, before they even started.

At the time, it was decided they would have to use a state mediator and, if they could not reach an agreement, strike would be unavoidable.

“We could not reach an agreement and have decided to break down negotiations”, IE union leader Leif Sande said at the time.

The settlement covers approximately 800 employees working at offshore supply bases along the Norwegian coast and was reached two and a half hours past the set deadline.