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
WHAT DO YOU THINK?
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.
Operates 5 Offshore Rigs
Manages 23 Offshore Rigs
- Maersk to Limit Investment in Energy Businesses until Separation (Dec 13)
- Maersk Oil Begins Culzean Drilling Campaign (Sep 29)
- Maersk Highlander Ready for Action (Aug 19)
Company: Statoil more info
Operates 1 Offshore Rigs
- Statoil May Build Onshore Terminal for Castberg Oil -Minister (Jan 16)
- Canadian Offshore Oil Interest Grows As Pipeline Woes Sink Alberta Prices (Dec 20)
- Sharp Fall In Applications For Norway's Arctic Oil Permits (Dec 05)
Company: Transocean Ltd. more info
Manages 46 Offshore Rigs
- Oil's Biggest Rigs Headed to Junkyard as Daily Losses Mount (Oct 18)
- Transocean To Buy Norwegian Rig Firm Songa Offshore For $1.1B (Aug 15)
- Borr Drilling Signs Deal With Transocean to Buy 15 Rigs (Mar 20)
Company: Fred, Olsen ASA more info
- Fred. Olsen Energy Says Lossmaking Contract Levels Persist (Feb 16)
- Norwegian Oil Drillers Call in Mediator after Wage Talks Fail (May 22)
- Norway's Fred. Olsen Energy Sees Tough Rig Market Ahead (Oct 28)
Company: Seadrill Ltd more info
- Norway's Seadrill Gets Two Rival Debt Restructuring Proposals (Oct 23)
- Seadrill's Debt Overhaul Faces Creditor Scrutiny (Oct 02)
- Seadrill Files for Bankruptcy in Bid to Shrink Debt Burden (Sep 13)