The Norwegian Oil and Gas Association and the Norwegian Union of Energy Workers (Safe) reached agreement on the well service pay agreement during the evening of 6 July. Strike action has thereby been averted.
“The mediation process was demanding, but we reached a conclusion in line with the framework for the lead sector’s settlement,” says Jan Hodneland, lead negotiator at Norwegian Oil and Gas.
A general pay rise of US$367 (NOK 3100) and an increase of $0.12c (NOK 1) on the supplement for shift and night work have been awarded.
The two sides have also agreed to pursue binding committee work to discuss cost-driving elements in the pay agreement. The aim will be to boost flexibility for the companies, including in relation to shift and working time arrangements.
“We believe the two sides can jointly find good solutions for the sector covered by the agreement through such committee work,” says Hodneland. “That’ll put efforts to reduce costs on the Norwegian continental shelf (NCS) on the agenda. We’re pleased to have avoided a conflict.”
Minor adjustments have also been made to land-based employees covered by the agreement.
The well service agreement with Safe embraces 663 of the union’s members.