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PHOTO: Norwegian Oil and Gas

Talks on offshore pay deals under way

This year’s negotiations on collective pay agreements for operator, drilling and catering employees on the Norwegian continental shelf (NCS) are taking place on 7-8 May.

Central talks took place earlier this year between the Confederation of Norwegian Enterprise (NHO) and the Norwegian Confederation of Trade Unions (LO)/Confederation of Vocational Unions (YS).

These parties reached agreement on a pay increase of 2.50 per hour and a supplement of NOK 2.00 per hour for lower-paid workers. At the same time, an estimated framework of 3.2 per cent was set for this year’s pay settlement.

The lead-sectors model sets the norm for overall pay formation in Norway, as well as for negotiations conducted by the Norwegian Oil and Gas Association.

“It’s important that the collective pay agreements continue to be kept within responsible limits, so that the industry remains as robust as possible against new sharp fluctuations in the market,” says lead negotiator Jan Hodneland at Norwegian Oil and Gas.

“Many of the supplier companies are struggling with margins and earnings. It’s important at this stage to avoid a high level of pay growth which could again threaten employment, but rather to lay a good basis for secure and long-term jobs.”

The Norwegian Union of Industry and Energy Workers (Industry Energy), the Norwegian Union of Energy Workers (Safe) and the Norwegian Organisation of Managers and Executives (Lederne) are negotiating with Norwegian Oil and Gas.

Where Industry Energy and Safe are concerned, this is an intermediate settlement and these unions do not have the right to strike. However, negotiations with the independent Lederne union could lead to mediation if no agreement is reached.

The offshore agreements cover about 7 000 workers who are employed at oil companies, in catering and as drilling personnel by the following companies:

Equinor ASA, ConocoPhillips Norge, Aker BP, Neptune Energy Norge, Lundin Norway, Norske Shell, Repsol Norge, Wintershall Dea, Vår Energi, KCA Deutag Drilling Norge AS, ESS Support Services AS, Sodexo Remote Sites Norway AS, Coor Service Management and 4Service Offshore Hotels AS.

Further information from:

Kolbjørn Andreassen, information manager, Norwegian Oil and Gas, mobile +47 952 82 808