Norwegian Oil Drillers Call in Mediator after Wage Talks Fail


OSLO, May 22 (Reuters) – Wage talks involving thousands of Norwegian offshore oil workers broke down late on Thursday, unions and employers said, raising the risk of a strike that could disrupt oil exploration and efforts to raise output from existing fields.

The talks between the Norwegian Shipowners' Association (NSA) and three labour unions affecting more than 9,000 workers will now move to arbitration led by a state-appointed mediator. The dispute could end in a strike if those negotiations fail.

Industrial action would be unlikely to affect the production of oil and gas in the short term, but could have an impact in the medium to long term as expansion projects and the start-up of new oil fields would be delayed.

Companies that could be directly or indirectly affected include Statoil, Transocean , Seadrill , A.P. Moeller-Maersk and Fred. Olsen .

Owners of drilling rigs, facing a sharp drop in demand as weak crude prices prompted oil companies to cut investment, argued that wages should remain unchanged for the next year, while unions demanded a rise in line with other sectors. They have not publicly disclosed a figure but other major Norwegian unions have secured 2.7 percent wage increases on average for their members this year.

The Safe, Industri Energi and DSO unions, representing workers on mobile offshore units and platform drilling on permanent installations on the Norwegian shelf, said the rig owners, represented by the NSA, had not offered anything substantial.

"The Norwegian Shipowners' Association didn't have a dime to offer our members," Safe chief Hilde-Marit Rysst, said in a statement.


View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Shipping and Receiving Specialist
Expertise: Logistics Management|Port Operations
Location: College Station, TX
Operations Procedure Writer Job
Expertise: Document Control|Technical Writing
Location: Township of Welch, MN
United States Duncan MFG: Entry Level Procurement Specialist - Sr. Procurem
Expertise: Supply Chain Management
Location: Duncan, OK
search for more jobs

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours