Arbeidsliv

Challenging pay talks for land bases

Negotiations over a new set of agreements on pay and conditions for the land bases serving Norway’s offshore sector are under way this week. The industry is in a very demanding position, and the Norwegian Oil and Gas Association must take account of

“We must adapt to a lasting reduction in the level of costs while simultaneously improving our competitiveness in order to preserve as many jobs as possible,” says Jan Hodneland, lead negotiator for Norwegian Oil and Gas.

The demands submitted today, Wednesday, show that the various parties are far apart. Many different subjects will occupy a central place in the negotiations, including both issues of principle and financial matters.

Challenging times
Low oil prices and a high level of costs have contributed to a decline in investment and activity on the Norwegian continental shelf (NCS). Member companies in Norwegian Oil and Gas are experiencing demanding times, and are in the middle of a restructuring process with extensive downsizing. Unemployment has risen, particularly in western Norway, and is expected to increase further in the time to come.

“Demands which weaken flexibility and create new restrictions in the collective pay agreement will be completely contrary to what we believe is needed for the companies to become more competitive in today’s conditions,” says Hodneland. “Our immediate reaction is that the talks will be demanding.”

The negotiations have been concluded for today, and will resume tomorrow.

Contacts
Jan Hodneland, lead negotiator, Norwegian Oil and Gas, mobile +47 913 41 301
Kolbjørn Andreassen, communication manager, Norwegian Oil and Gas, mobile +47 952 82 808

Facts about the land base settlement
Wednesday to Friday this week have been allocated for negotiations on the land base agreements. The Norwegian Union of Industry and Energy Workers (Industry Energy) and the Parat union represent personnel covered by the deals, while Norwegian Oil and Gas negotiates on behalf of the employers.

About 800 people are covered by these agreements. They work at supply bases along the whole Norwegian coast for  the following companies: KCA Deutag Drilling Norge AS, Asco Norge AS, NorSea AS, Coast Center Base AS, Vestbase AS, Polarbase AS, CCB Mongstad AS, Helgelandsbase AS and Saga Fjordbase AS.

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