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Norway oil drilling workers agree wage deal, averting strike

Norway oil drilling workers agree wage deal, averting strike

FILE PHOTO: Drilling rigs and ships anchored in Skipavika, Norway April 1, 2018. Picture taken April 1, 2018. REUTERS/Gwladys Fouche/File Photo

Norwegian labour unions have agreed to a wage deal, averting a strike at floating offshore oil and gas drilling rigs that would have disrupted exploration, unions and company representatives said on Friday evening.

Unions had said that 438 workers on three rigs were prepared to strike initially if the talks failed, but no immediate disruption to oil and gas production was expected.

The wage deal between the Norwegian Shipowners’ Association and the Styrke, Safe and DSO labour unions cover more than 7,200 workers.

A strike could also have escalated beyond the initial three rigs within days, potentially impacting oil and gas output at a later time.

Styrke, the largest of the three unions, said the wage deal gave oil drilling workers “a significant pay increase”.

“We have reached a settlement that we are very satisfied with,” Styrke’s leader Frode Alfheim said in a statement.

Norwegian Shipowners’ Association said the deal was also reached with Safe and DSO.

Workers directly employed by oil firms, including those most closely involved in the output of oil and gas, separately agreed a wage deal last month, thus preventing a strike.

A broad-based group of onshore industry workers reached a wage deal with employers in March for a 4.4% pay rise this year, although demands in other sectors could deviate.

(Reporting by Nerijus Adomaitis)

 

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