Accord for the oil sector in stoppage time

Oil sector mediation salaryThe parties in the oil sector negotiations: Jan Hodneland (Norwegian Oil & Gas), Edvard Os (State Mediator) and Audun Ingvartsen (Lederne). Photo: Lederne.

Accord for the oil sector in stoppage time

The mediation between the Trade Union Lederne (The Managers) and the business organisation Norsk Olje & Gass (Norwegian Oil & Gas) ended in accord for the oil sector four hours into stoppage time night before Tuesday.

The parties to the Norwegian Continental Shelf agreement met at the Norwegian State Mediator’s Office on Monday at 10 am. The parties did not come to an accord when the deadline expired at midnight. The negotiations, therefore, continued well into stoppage time under the auspices of State Mediator, Edvard Os.

The parties in the oil sector came to an agreement at around 4 am in the morning. The notified strike was thus averted.

“This means that we have reached an agreement that we were not close to obtaining during the negotiations in Stavanger,”  Leader of the Trade Union, Audun Ingvartsen, writes in a press release from Lederne.

Same as the offer

“The negations have been very demanding, but an agreement was, at long last, reached on an economic framework that is similar to what was offered in the wage negotiations in May; which has already been accepted by Industry & Energy and Safe,” leader of the negotiations for Norwegian Oil & Gas, Jan Hodneland, states.

The negotiating result fulfils the same framework as the original offer, submitted on May 8th, and also the «front professions» framework of a 3.2 per cent increase in salary.

“The negotiating parties (in the oil sector) highlight the importance of factual local negotiations being carried out. The Negotiating Committee of the Managers expects the various companies to end up well above the Front Professions settlement,” Ingvartsen emphasises in his statement.

Big consequences

A strike would have affected the production on a number of fields on the Norwegian Continental Shelf – if the parties had not reached an accord.

The overall consequences of a strike could have been a daily production loss of around 440,000 barrels of oil equivalents, according to Norwegian Oil and Gas.

The negotiations went to mediation after Lederne broke off the negotiations with Norwegian Oil and Gas on 8th May. Lederne represents around 1,000 of the 7,500 trade union members covered by the Norwegian Continental Shelf agreements. A strike by 198 of the members was pre-announced.

© NTB Scanpix / #Norway Today
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