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Land base talks break down

Negotiations over a new collective pay settlement for Norway’s land bases have clearly broken down after two days. The parties were too far apart for agreement to be possible.

“The land base business is in a restructuring process, and experiencing heavy pressure on costs,” observes Jan Hodneland, lead negotiator for Norwegian Oil and Gas. “In such circumstances, there’s no room for pay growth.”

Many of the member companies in Norwegian Oil and Gas are experiencing demanding times, and are in the middle of a restructuring process with extensive downsizing. Unemployment in the industry has risen, and is expected to increase further in the time to come.

Given these conditions, Norwegian Oil and Gas believes it would be irresponsible towards both the companies and their employees to agree terms which weaken profitability and flexibility.

Unfortunately, the Norwegian Union of Industry and Energy Workers (Industry Energy) does not appear to share this understanding of reality.

“The growth in costs must be halted and reversed if the companies are to be able to preserve as many jobs as possible,” says Hodneland.

This was the first set of collective pay agreements to be negotiated by Norwegian Oil and Gas in 2016. The settlement will now go to mediation.

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

Facts about the land base settlement
Wednesday to Friday this week were allocated for negotiations on the land base agreements. The Norwegian Union of Industry and Energy Workers (Industry Energy) and the Parat union represent personnel covered by the deals, while Norwegian Oil and Gas negotiates on behalf of the employers.

About 800 people are covered by these agreements. They work at supply bases along the whole Norwegian coast for  the following companies: KCA Deutag Drilling Norge AS, Asco Norge AS, NorSea AS, Coast Center Base AS, Vestbase AS, Polarbase AS, CCB Mongstadbase AS, Helgelandsbase AS and Saga Fjordbase AS.