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CREDIT: Kolbjørn Andreassen/Norwegian Oil and Gas

Oil service talks under way

Negotiations on collective pay settlements for union members in oil service companies begin today. These agreements cover just over 5 000 employees.

Tuesday 20 October and 21 October have been allocated for talks on the oil service agreement with the Norwegian Union of Industry and Energy Workers (Industry Energy) and on the well service agreement with the Norwegian Union of Energy Workers. The two are identically worded.

A settlement was reached in August between the two sides in the lead sector, which covers industries exposed to foreign competition, after mediation went into overtime.

This agreement included an overall financial framework of 1.7 per cent for annual pay growth. That comprises pay carry-over from last year, the effects of the central settlement and estimated pay drift – in other words, the probable outcome of local pay negotiations.

The lead sector framework is intended to provide the model for subsequent pay settlements.

“We’re in an unusually demanding year,” says chief negotiator Jan Hodneland at Norwegian Oil and Gas. “Oil and gas prices have fallen sharply as a result of reduced demand following the coronavirus pandemic, and we see that the latter will also affect consumption next year.

“Supplier margins are under heavy pressure, and require a very moderate settlement which helps to ensure that the industry can emerge from the current economic crisis in the best possible condition.”

Facts about the oil service settlements
Just over 5 000 employees are covered by the two agreements. These work for various service companies which deliver to the oil companies. They are:

Schlumberger Norge, Halliburton, Baker Hughes Norge, Oceaneering, Altus Intervention, Weatherford Norge, Aker Solutions (Ågotnes department), Vetco Gray Scandinavia, Oceaneering Asset Integrity, Subsea 7 Norway, Expro Norway, Franks International, Welltec Oilfield, Cameron Norge, Ramco Norway, PSW Technology, Rely0n Nutec Norway, Enhanced Drilling, IOS Tubular Management, Intertek West Lab, Soiltech Offshore Services, ResQ, Landmark Graphics, Petrotech, Stratum Reservoir Norway, Benor, KCA Deutag Drilling Norge, Speedcast Norway, Altus Intervention Technologies, Nosefo Tau, Nosefo Bergen and TWMA Norge.

Kolbjørn Andreassen, information manager, Norwegian Oil and Gas, mobile: +47 952 82 808, e-mail: ka@norog.no