Unacceptable pension demand

 Calls by Norway’s oil unions for pensions to be included in the 2012 pay deal cannot be accepted.

 

“Pensions are not and never will be part of the central pay talks,” says Jan Hodneland at the Norwegian Oil Industry Association (OLF).

“This demand from Industry Energy, the Norwegian Union of Energy Workers (Safe) and the Norwegian Organisation of Managers and Executives clearly shows that they’re placing themselves apart from all other private sector unions,” adds Mr Hodneland, who is the OLF’s director of employee policy.

Negotiations over the offshore pay agreement in late May broke down when the OLF was unable to present an offer which meet the union requirements over discretion pension benefits.

Saving
“Pensions represent very long-term saving, and the individual company must decide for itself which arrangement is most appropriate,” says Mr Hodneland.
“The OLF cannot impose centrally negotiated pension provisions on its member companies, and these terms cannot form part of an agreement on pay and conditions.”

Norwegian employer associations and unions have already agreed an early retirement scheme (ALP). The Norwegian Confederation of Trade Unions (LO) and the labour movement also supported the country’s 2011 pension reform. However, the demand from the three offshore unions for full earning of pension rights by the age of 62 conflicts with the intentions of the latter.
“An agreement on discretionary pensions over and above the ALP would give offshore workers significantly better rights than other employees,” Mr Hodneland observes.

 “There is no reason why precisely this group, subject to this particular pay agreement, should have the right to a fully earned pension by 62.”

Long list
The demand for a discretionary payment of enhanced pension benefits is only one item in a long list of claims made by the unions with varying degrees of seriousness.
“These add up to an annual rise of NOK 70 000 per worker, or more than 10 per cent,” says Mr Hodneland. “They go way beyond what we otherwise see in society. The settlements for industrial sectors exposed to foreign compeition, which have been negotiated first in the current pay round, should once again provide the template for a solution, ” says Mr Hodneland.

Statistics
Basic pay for an offshore operator averages NOK 597 743, according to statistics from the Confederation of Norwegian Enterprises (NHO). Normal supplements raise this figure to NOK 730 048.

In addition, reported data for 2009 from the companies show that offshore workers also receive overtime payments averaging NOK 218 000. Overall pay is estimated to exceed NOK 960 000.
“With the demands being made in this year’s negotiations, total annual income for skilled offshore workers will top NOK 1 million by a good margin,” says Mr Hodneland.
“We hope to find a solution during the mediation process which is in line with the settlements for sectors exposed to foreign competition in terms of their impact on the rest of society.”

Further information from:
Eli Ane Nedreskår, communications manager, working life, OLF, mobile: +47 99 45 01 01

The offshore agreement in brief
The offshore pay agreement covers personnel working for the oil companies on the Norwegian continental shelf (NCS). It is reached between the Norwegian Oil Industry Association (OLF) and Industry Energy, the Norwegian Union of Energy Workers (Safe) and the Norwegian Organisation of Managers and Executives.

Submitted to mediation on 22 June, the agreement covers pay and conditions for some 7 100 employees on fixed NCS installations. This figure includes 5 900 operators, 850 drilling workers and just over 1 000 catering personnel. The great bulk of these people are skilled workers with two years of further education college and two to 2.5 years as an apprentice.

 

 

Related news

Latest news

Jotne Subsea Gas Lift for Balder Field

In April 2015, Jotne E&P was awarded an EPC contract to build the subsea gas lift manifold for Exxon Mobil on the Balder Field.

Jotne Awarded Contract for Subsea Protection Structure

In January 2016, Jotne E&P was awarded a contract for the delivery of a subsea protection structure and GRP cover for a Xmas tree at Balder field. The contract was awarded by Ocean Installer.

UiB and CMR in high-tech collaboration

Students from UiB last month joined an experiment with an ultra-high-speed camera. This was a part of the troubleshooting of the Field Kelvin Probe currently under development.

Hatteland Display at International Workboat Show 2016

Hatteland Display are highlighting its diverse portfolio of maritime displays and panel computers on its booth (#1658) at the International Workboat Show 2016 (IWBS 2016) this week.

Servogear Announces Upcoming Events

Servogear announces a busy end of November, beginning of December. They will be participating at important international exhibitions.

Teamtec and ANDRITZ Cooperation

ANDRITZ and TeamTec have signed a cooperation agreement for worldwide marketing of the SeaSOx exhaust gas cleaning system for the maritime industry. 

Export Credit Norway looking for Norway's Best Exporter

Export Credit Norway  has now opened the nomination process for the 2017 Export Award, searching the Norwegian exporter of the year. 

Global Economic Outlook

7 December, Oslo Chamber of Commerce invites to a session with insightful updates on the Norwegian and international economy.

Rebuilding for Hydrogen

M/Y “Che Guevara”, previously owned by Gaddafi, will be converted to run on hydrogen. Greenstat will lead the project and are seeking partners.