As the Oil and Gas Association reports, Norway may suffer a possible strike over pay, which will result to loosing about 400,000 barrels of oil equivalent a day in production. Under the fear of strike, the Norwegian Oil and Gas Association and the Norwegian Organisation of Managers and Executives (Lederne) began mediation on Monday over pay and conditions.
Specifically, the mediation comes after Lederne decided to cut off negotiations with the Norwegian oil and gas, over the offshore agreement on pay and conditions.
As the Norwegian Oil and Gas Association commented
Lederne thereby rejected an offer within the framework for the lead sectors set by the Confederation of Norwegian Enterprise (NHO), the Confederation of Vocational Unions (YS) and the Norwegian Confederation of Trade Unions (LO) earlier this year.
Lederne interests approximately 1,000 members, of the 7,500 unionized employers covered by the offshore agreements. Thus, the Association informs that Lederne issued a notice, according to which 198 personnel will down tools on the following installations:
- Gjøa (Neptune Energy): 75 members;
- Ekofisk 2/4 K and 2/4 B (ConocoPhillips): 28 members;
- Kristin (Equinor): 24 members;
- Draugen (Okea): 23 members;
- Ivar Aasen (Aker BP): 17 members;
- Oseberg East (Equinor): 16 members;
- Gudrun (Equinor): 15 members.
Moreover, the Oil and Gas Association highlights that a possible conflict could lead to the shut down of Gjøa, Kristin, Draugen, Ivar Aasen, Oseberg East, and Gudrun. As a consequence, the output would also cease from associated fields such as Tyrihans, Maria and Vega. This would mean a daily production loss of roughly 440 000 barrels of oil equivalent.
Jan Hodneland, lead negotiator for Norwegian Oil and Gas commented that it is important to avoid any excessive pay growth in the future, as increased costs will make jobs more uncertain, instead of secure and long term.
Mr Hodneland added
Production from a number of Norwegian fields would be affected by a possible conflict, which is serious. We, therefore, hope agreement can be reached with Lederne through mediation.
Production from fields in the Ekofisk area has been shut down from Monday, June 3, in connection with planned maintenance, and will therefore not be affected by a possible conflict in the short term, the oil and gas body said. A possible strike may not be initiated until 24.00 on 3 June 2019 at the earliest.
