New collective agreements in the Norwegian oil sector

The most important agreements in the Norwegian oil sector were concluded in June 1998 without resort to strikes or lock-outs.

There are several employee organisations competing for the same employees within the oil sector, and there have been frequent strikes in connection with previous wage settlement negotiations. However, in the 1998 wage settlement the most important agreements were concluded in June without resort to strikes or lockouts. The deals for employees on fixed and mobile offshore installations have been recommended by the Norwegian Oil and Petrochemical Workers Union (Norsk Olje-og Petrokjemisk Fagforbund, NOPEF), which is a member union of the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO), and the Federation of Oil Workers Trade Unions (Oljearbeidernes Fellessammenslutning, OFS), which is a member of the Confederation of Vocational Unions (Yrkesorganisasjonenes Sentralforbund, YS) (NO9703106N).

In the agreements concerning employees on fixed installations, the parties agreed on a general wage increase of 5.5% from 1 July 1998. The parties also agreed on the possibility of introducing company-level wage structures for employees in oil companies, which may include bonus arrangements. Pay determination in this sector has previously been highly centralised, with no possibility of company-level negotiations. Industrial action is banned during local negotiations, and the centrally determined standard wage structure will still apply if company agreements are not reached over new pay systems. Company-level pay systems must be approved by the central organisations.

The negotiations for employees on mobile offshore units, and for platform drilling on fixed installation on the Norwegian continental shelf, also produced new collective agreements. This area of the oil sector was hit by a six-week strike in the autumn of 1997, when one of the three employee organisations was unable to recommend the proposal for a new agreement (NO9710128N). In 1998's bargaining, the three organisations decided to cooperate during the negotiations. The new agreements provide for employees to receive occupational pensions from the age of 67. The existing provisions concerning early retirement have been amended: in addition to the early retirement pension, which equals the agreement-based pensions applying to most other areas, employees between 62 and 67 years of age in this area of the oil sector are granted an annual supplement of NOK 45,000. Central pay increases have also been awarded, and the deputy leader of NOPEF, Leif Sande, indicates that these constitute on average approximately NOK 20,000 per year.

The agreements for fixed and mobile offshore installations have been recommended by the organisations concerned. The agreements must, however, be accepted by the members in ballots, the results of which will not be known until August 1998.