With 10 rigs out of service, oil strike to leave 1,700 workers unemployed?
A conflict between the Norwegian union Industri Energi and the employers’ organization the Norwegian Oil and Gas Association will result in ten out of service rigs during the week and more than 1,700 employees laid off, the Norwegian Shipowners’ Association (NSA) has said.
The oil service workers’ strike, that started on Wednesday last week, had major consequences for drilling and well operations on the Norwegian continental shelf and consequently for the rig companies. The workers went on strike after the union and the employers’ organization failed to agree over the collective oil service agreement.
NSA director, Pål Tangen, said that the strike comes at the worst possible time in an already difficult market with the low dayrates and rig oversupply.
According to the shipowners’ association, since the strike started, seven rigs were pulled out of service and by the end of the week this count is expected to climb up to ten rigs. Furthermore, more than 1,700 employees could be laid off as the people who work every day to keep a rig operational no longer have anything to do as a result of the strike.
Tangen noted that while the association is not part of this conflict it has been hit hard as a third party. He also said that this could have long-term consequences for the Norwegian rig industry, for both companies and employees.
“We assume that the parties are aware of this responsibility,” Tangen concluded.
Offshore Energy Today reported on Wednesday that around 350 oil service workers at Baker Hughes, Schlumberger, and Halliburton had been laid off in Norway as a result of the strike action with further layoffs expected in the following days in various companies.
Offshore Energy Today Staff