Looking for a specific product?

Make a search for products & suppliers, articles & news.

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

SAR Celebrates 2nd anniversary in Kuwait

SAR Celebrates 2nd anniversary of operation in Kuwait.

SAR AS Celebrates 30 years of operation!

The history of SAR goes 50 years back to the late 1960s with the company Septik Tank Co. 

Ready to conquer the world with Hansen Protection Helicopter pilot suits

In 2017, for the first time in the history of helicopter sport, the World Cup in Helicopter Races is going to be held. It is going to take place in 7 countries, and starts on Friday April 7th in Konakovo, Russia.

SeaBass Fisherman's Work / Flotation Suit

SeaBass is a waterproof, buoyant work suit for anyone working on or around water.

Improved Surface Rescue Preparedness can Save Lives

A significant part of the Norwegian fire and rescue services lack good apparel for use in surface rescue operations. This can mean the loss of valuable time in rescue operations in water, and experts now call for a change ...

Historical contract for Norwater AS!

The excitement was at its height at Norwater AS in Høylandsbygd on Wednesday last week. The company signed its biggest contract in history, in strong competition with both Norwegian and foreign competitors. The order book ...

Export Credit Norway Finances Production of Ready-to-use Therapeutic Foods in South Africa

Since being founded in 1948, the Norwegian company GC Rieber Compact has developed into a leading supplier of ready-to-use therapeutic foods to customers such as Doctors Without Borders, the Red Cross, the World Food Progr...

Peru Corporate Day

On 26th September, Oslo Chamber of Commerce will for the first time receive a technological business delegation from Peru to Norway, led by PROMPERÚ.

New contract for delivery of Servogear CPP

The Servogear installation includes CPP propellers,