Strike Averted as Norway Onshore Support Workers Agree New Terms

Strike Averted as Norway Onshore Support Workers Agree New Terms

The Offshore Norge oil and gas association and the union Styrke on Thursday agreed pay increases and other changes in the Supply Base Agreement, averting a planned strike by about 875 workers.

The dispute was settled after midnight following "a demanding round" of government mediation, Offshore Norge chief negotiator Silje Tufto said in an online statement.

The companies involved were KCA Deutag Drilling Norge, ASCO Norge AS, CCB AS, CCB Mongstad AS, Helgelandsbase AS, NorSea Group AS, NorSea Property AS, NorSea Logistics AS, NorSea Polarbase AS, Saga Fjordbase AS and Kristiansund Base AS, according to Offshore Norge.

A general increase of NOK 6.5 ($0.7) per hour will take effect retrospectively from June 1, in line with the frontfag - or national benchmark - wage settlement, Styrke said separately.

"Minimum wage rates will be raised, and apprentices will receive overtime pay equivalent to skilled workers at the company", it added.

"Styrke also secured a provision ensuring 100 percent overtime premium after 19:00 on Fridays".

All companies covered by the Supply Base Agreement must now also advance sick pay, parental benefits and caregiver benefits.

"The parties also strengthened the wording on the rules for overtime meals, aiming to improve local practices. Where the employer cannot provide a meal, the meal allowance will increase from NOK 150 to NOK 155", said Styrke chief negotiator Christopher Talgø.

On the other hand, Styrke said it lost a proposal for a unified regulation of schedules for daily working hours exceeding 10.5 hours. However, Styrke "will still make the same demands when approving each application for such work schedules", Talgø said.

Styrke noted, "The land base agreement is a minimum-wage agreement, meaning wage negotiations continue at each company based on the four established criteria: the company’s finances, future prospects, productivity, and competitiveness".

Most of the employees covered by the new agreement are Styrke members while the rest are organized through Parat, according to Offshore Norge.

"This has been a demanding round of mediation, but we are pleased to have reached a new collective agreement", said Tufto, Offshore Norge's chief negotiator.

On Tuesday Styrke, along with the Norwegian Union of Energy Workers (SAFE), warned of separate strikes should government mediation scheduled for July 1 and 2 fail to yield a new Floating Rigs Agreement. SAFE said 325 workers may walk out while Styrke said 265 of its members may join in.

SAFE said in an online statement, "If the parties do not agree, there will also be a strike in the rig area from Friday, July 3".

To contact the author, email jov.onsat@rigzone.com

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