Compulsory arbitration used to resolve conflict on mobile offshore units

In October 1997, a government proposal recommending compulsory arbitration brought to an end the five-week long industrial dispute on mobile offshore units in the Norwegian sector of the North Sea.

On Friday 3 October 1997 the then Labour Government (since defeated in a general election) decided to recommend compulsory arbitration in order to resolve the industrial conflict between the Federation of Offshore Workers Trade Unions (Oljearbeidernes Fellesammenslutning, OFS) and the Norges Rederiforbund employers' organisation, which was taking place on mobile units in the Norwegian sector of the North Sea (NO9709123N). The Norwegian Parliament, Stortinget, will, however, make the final decision.

Because of the prior notice given that the dispute would be extended, the outgoing Government decided on compulsory arbitration in order to minimise the fears that the conflict would have a damaging impact on Norwegian oil production, and as a consequence damage Norway's reputation as an oil producing nation. The Government also emphasised that mediation had proved to be fruitless, and that the conflict could well last for a considerable time. Previous interventions in the offshore sector's wage settlements by using compulsory arbitration have been criticised by the International Labour Organisation (ILO). Nonetheless, on the basis of a Supreme Court ruling from the spring of 1997, the Government claimed that the intervention was not in contradiction with Norway's international obligations (NO9704109N). OFS rejects the Government's decision to intervene on the grounds that it represents an improper use of compulsory arbitration, and refers to previous criticism directed at the Norwegian Government by international organisations.

The industrial conflict became a reality at midnight 24 August when the parties failed to reach agreement over a new collective agreement. The situation is complicated by the fact that the employers had already reached agreement with the two other employee organisations which have bargaining rights within this area. The strike, which initially covered approximately 350 employees on five platforms, was extended to approximately 450 employees on seven platforms. After a failed attempt to persuade the parties to resume negotiations, the conflict came to a head when Norges Rederiforbund imposed a lockout on all mobile offshore units.