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Agreement on the offshore settlement

The Norwegian Oil and Gas Association reached agreement three and a half hours past the deadline on an offshore pay settlement with the Norwegian Union of Industry and Energy Workers (Industry Energy), the Norwegian Union of Energy Workers (Safe)

“These negotiations have been demanding, with a number of different issues which had to be resolved,” says Jan Hodneland, lead negotiator for Norwegian Oil and Gas. “The settlement falls within the framework established by the lead sector, but is expensive.

“Given the demanding position which the industry currently finds itself in, it was nevertheless crucial for us to find a solution which ensured that a strike could be avoided.”

A general pay rise of NOK 9 100 will be awarded. This includes offshore compensation and holiday money. In addition comes a deferred increase of NOK 3 118 including offshore compensation and holiday money. The shift and night work supplement has also been increased by NOK 1.50, while the amount available for company-level negotiations is raised to NOK 600.

The mediated agreement also specifies that the two sides will appoint one or more committees during the 2016-18 duration of the settlement to assess issues related to time spent offshore as well as changes to the work plan, workplace and work periods.

This is intended to tackle the cost challenges faced by companies covered by the offshore agreements. The expectation is that such mutually binding committee discussions will help to strengthen the competitiveness of the Norwegian continental shelf.

In addition, the two sides are to study how payments into the fund for the loss of medical certification should be adjusted. This will be done during the first year of the current settlement.

Jan Hodneland, lead negotiator, Norwegian Oil and Gas, mobile +47 913 41 301
Kolbjørn Andreassen, communication manager, pay negotiations, Norwegian Oil and Gas, mobile +47 952 82 808

Facts about the offshore settlement

About 7 500 employees are covered by the offshore agreements. They work in oil companies, in catering and as drilling personnel in the following enterprises: Statoil ASA, A/S Norske Shell, BP Norge AS, ESS Support Services AS, Esso Norge AS, Sodexo Remote Sites Norway AS, KCA Deutag Drilling Norge AS, Talisman Energy Norge AS, Engie E&P Norge, ConocoPhillips, Wintershall, Coor Offshore AS, Eni Norge AS and Lundin Norway AS.