No strike on Norwegian offshore rigs as settlement reached
- Exploration & Production
A looming offshore rig workers’ strike in Norway has been averted as the employers and the workers have reached a settlement on wages through mediation.
To remind, the SAFE union had threatened its workers aboard rigs “Rowan Viking” and “Rowan Gorilla” would go on a strike should the mediation fail.
However, the strike has been avoided, as the unions – SAFE, Industri Energi, and DSO – and Norwegian Shipowners Association managed to reach an agreement at 2 a.m. on Wednesday.
Worth noting, the mediation deadline had expired at midnight on Tuesday, but the parties then agreed to continue the talks further hoping to reach an agreement, which eventually happened.
“It was important that the parties arrived at a solution in an industry in crisis. As a responsible employer, we simply cannot incur higher labor costs in an industry that already has very good wages and working conditions,” said NSA’s chief negotiator Jacob Korsgaard.
Under the agreement, the workers will get a pay rise of 0.5 percent. Additionally, those laid off will have a right to be rehired within the next two years should the companies decide to increase the workforce numbers.
The Norwegian Shipowners Association has cited the fact that there are currently 15 rigs without work in Norway, with the number expected to rise to 25 inactive units by the end of the year.
Furthermore, NSA said that since the autumn of 2014, 40,000 people lost their jobs in the industry, and it is estimated that an additional 15,000 face losing their jobs before the activity level picks up again, which is not expected to happen in the next two years.
Offshore Energy Today Staff