Norwegian unions and employers have reached a last-minute wage deal, averting a strike that would have affected more than 600 workers on key offshore assets, according to Splash247 Maritime. The deal was struck on Thursday evening, close to the midnight deadline, with the Norwegian Shipowners' Association representing employers in the talks.
Pay Deal Details
The settlement covers workers on the Transocean Encourage rig, Odfjell Technology's Linus rig, AKOFS Seafarer well intervention vessel, and Equinor's Gullfaks B platform, as reported by Splash247. Under the agreement, workers will receive a 5.2% general wage increase, in line with other agreements across Norway's oil and gas sector, and pension contributions will also rise. The wage talks involved the unions Styrke, SAFE, and DSO. The wider agreement covers about 7,500 workers in total, helping ease pressure on a much larger part of the offshore labour force.
Broader Labour Unrest
Splash247 noted that the direct oil company workforce had already been removed from the dispute earlier this month, following another last-minute deal on June 5. However, oil service workers went on strike on 15 June after negotiations with Offshore Norge broke down. That initial strike hit ten service providers, including:
| Company |
|---|
| SLB |
| DOF |
| Halliburton |
| Weatherford |
| Tios |
| DeepOcean |
| Subsea 7 |
| Cactus |
| Vetco Gray Scandinavia |
| Baker Hughes |
The dispute has since widened after Offshore Norge extended the stoppage notice under the well service agreement to cover over 1,000 workers, according to the source.
Implications for North Sea Operations
While the last-minute deal averted a strike on the four named assets, the ongoing oil service strike continues to pressure the Norwegian offshore sector. Commodity traders and analysts tracking energy markets should note that the wage increase of 5.2% may set a precedent for upcoming negotiations. The assets directly affected by the averted strike are involved in drilling and well intervention for Equinor and other operators, meaning any disruption would have impacted production volumes. The wider strike covering over 1,000 workers could still affect service companies operating on multiple Norwegian fields.
Splash247 Maritime reported that the deal was reached with the Norwegian Shipowners' Association representing employers, and the unions Styrke, SAFE, and DSO were party to the agreement. No further details were provided on the duration of the new wage agreement or whether further negotiations are scheduled.
Sources:
