More Well Workers offshore Norway Will Join Strike
The Norwegian Union of Energy Workers (SAFE) said it had sent a notice that an additional 63 members would join hundreds already on strike after government mediation failed to yield a new Well Service Agreement.
Twenty-six SAFE members working for DeepOcean AS, 21 for DOF Subsea Norway Offshore AS, 12 for Subsea 7 Norway AS department Kanalsletta and 4 for Tios Crewing AS will join the walkout from Wednesday, the union said in an online statement.
"This is the third withdrawal SAFE has announced in the ongoing conflict over the well service agreement", said SAFE head negotiator Kai Morten Anda.
Offshore Norge, the industry association that represented employers in the failed negotiations, has yet to reply to Rigzone's comment request.
On June 22 Offshore Norge said the employers were implementing a "lockout", or a legal work halt, to force the nearly 400 workers who have gone on strike since mid-June into agreeing to terms proposed under government intervention.
"As of today, 378 SAFE members are on strike. The employers now find it necessary to implement a lockout", Offshore Norge said in a press release. "This is a lawful measure within the collective bargaining system and will be used to help bring the dispute to an end".
The companies earlier affected by the strike include SLB, DOF, Halliburton, Weatherford, Tios, DeepOcean, Subsea 7, Cactus, Vetco Gray Scandinavia and Baker Hughes.
"Preliminary feedback shows that the strike has a highly unbalanced impact on member companies, with significant consequences for those affected", Offshore Norge said. "Offshore Norge is therefore extending the notice of work stoppage under the Well Service Agreement to cover 1,272 of SAFE's approximately 1,770 members who are covered by the agreement.
"Certain companies operating offshore vessels are exempted to safeguard critical subsea emergency preparedness on the Norwegian continental shelf".
"Drilling rigs are being gradually ramped down and will only continue operations until ongoing well phases have been safely secured", it added. "Coincidentally, four Inspection, Maintenance and Repair vessels and one well intervention vessel have halted operations, and two rigs have already ceased activity.
"The strike is imposing significant costs on supplier companies, and has so far also led to some delay in oil and gas production".
SAFE responded to the lockout by saying, "The SAFE board supports well service in its fight for a fair working life. SAFE sees the lockout notice from Offshore Norway as a strong escalation of the conflict".
"SAFE has had moderate withdrawals, and SAFE stands firmly behind the well service area in its continued fight", the union added.
SAFE launched the strike June 15 after rejecting proposals it sees as lagging collective bargaining agreements in other parts of the oil and gas industry.
"In the last five years alone, the area has lagged a full wage settlement behind the other collective bargaining areas in the oil industry, which means that employers are saving one full wage settlement every five years", SAFE said at the time.
SAFE area manager Martin Skogland said, "We are falling behind financially, as well as when it comes to working conditions and rights".
"Employers have now started to apply to our agreement to register companies, and are withdrawing from other collective bargaining areas and terminating direct agreements. As we see it, the Well Service Agreement is becoming a 'dumping agreement'", added Skogland.
Elisabeth Brattebø Fenne, director for organization and labor relations and chief negotiator at Offshore Norge, said, "We cannot comment on what was communicated during mediation due to confidentiality, but the term 'dumping agreement' gives a misleading impression of both wage levels and working conditions and cannot be characterized as dumping".
"The average wage level for these offshore employees is approaching NOK 1 million ($107,000) per year. The mediator's proposal included an increase in the pay matrix rates of NOK 47,000 effective from 1 June 2026, including offshore compensation and holiday pay", Offshore Norge said. "A further increase of NOK 5,000 in the pay matrix rates is to take effect from 1 January 2027, including offshore compensation and holiday pay.
"The shift/night supplement will increase from NOK 109 to NOK 116.50 from 1 June 2026, while the public holiday supplement will increase from NOK 2,350 to NOK 2,400.
"Minimum pay rates will also be increased, and various adjustments have been made to technical allowances.
"The settlement is in line with the framework agreed in the lead sector earlier this spring".
Earlier in June Offshore Norge, SAFE, the Styrke union and the Norwegian Organization of Managers and Executives agreed new terms on pay and working conditions under their Offshore Agreement after government mediation.
SAFE and Styrke have confirmed they will participate in another government mediation scheduled for Wednesday and Thursday regarding the Floating Rigs Agreement.
To contact the author, email jov.onsat@rigzone.com
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