Norwegian Offshore Strike Averted

A strike was averted in the early hours of October 7 through an agreement between Norwegian trade union SAFE and employers group Norwegian Oil and Gas Association.

Early last week, SAFE had threatened to call 338 of its members out on strike at the Melkoya (Snohvit LNG) and Shell-operated Nyhamna (Ormen Lange) gas terminals and at Exxon’s Slagen oil refinery at midnight on October 6/7. But the mediation ended successfully at 3am on October 7.

Overview of Nyhamna gas process and export complex (Photo credit: Shell)

"We’re pleased to have reached agreement through the mediation process on a new collective pay agreement for the next two-year period," said Jan Hodneland, lead negotiator at the Norwegian Oil and Gas Association. It said the agreement is primarily a frame settlement, which means in part that pay levels are determined/negotiated at local level.  

SAFE also said it had managed to increase the scope for Shell and Exxon employees beyond what had originally been given in local negotiations.  The union added that all parties have committed themselves to set up a commission to examine how wage formation will be developed in the future. 

However a separate trade union, Industri Energi, said that some 300 of its workers remain on strike - and that the mediation reached with SAFE on October 7 was "completely separate from the ongoing dispute with Industri Energi."

Mark Smedley