Norway oil sector union leader says wage deal is 'good enough'

Orron Energy AB

17/06/2022 07:49

By Nerijus Adomaitis
    OSLO, June 17 (Reuters) - The leader of a union representing
Norwegian oil workers said she would recommend to members a wage
deal the union struck with oil companies as it was "good
enough", she told Reuters.
    Two of three unions that negotiated the agreement last week
are seeking approval from members before they formally endorse
it. If they don't, a strike could hit petroleum
output. urn:newsml:reuters.com:*:nL1N2XZ05V
    Norway is Western Europe's largest petroleum producer.    
    One of the two unions, Safe, has not made a formal
recommendation to its members, but its leader said she thought
the deal was satisfactory.
    "If people ask me personally, I would recommend to take the
deal. I think it's a good enough deal," Hilde-Marit Rysst told
Reuters.
    Union members have until June 30 to approve or reject the
deal by a simple majority. If turnout is under 50%, the union's
leadership decides whether to go on strike or not, Rysst said. 
    The other union seeking approval from members, Lederne, did
not reply to requests for comment.  
    The third union involved in the talks, Industri Energi,
approved the deal without seeking members' go-ahead.
    
    PURCHASING POWER
    Under the deal, offshore workers directly employed by firms
operating fields, such as Equinor  EQNR.OL , Aker BP  AKRBP.OL 
or ConocoPhillips  COP.N , will see annual wages rise by 32,200
crowns ($3,207). 
    In addition, workers at offshore drilling and catering
companies will get an extra 6,238 crowns per year, bringing
their total increase in wages to 38,438 crowns.
    That translates into an average 4.6% wage rise for skilled
workers or technicians at oil companies, and a 5.4% rise at
drilling and catering companies, according to a Reuters
calculation based on data provided by Industri Energi. 
    The wage increase is better than the 3.7% agreed under a
framework agreement between Norway's main employee and employer
organisations in April, which sets the benchmark for sectoral
wage talks in Norway. 
    Since that deal was struck, however, inflation in Norway has
accelerated, with core inflation rising to 5.7% in May
year-on-year, with the statistics agency expecting prices to
rise 4.7% in 2022, up from the 3.3% it predicted in March.
 urn:newsml:reuters.com:*:nAPN0MISRQ urn:newsml:reuters.com:*:nL8N2XX0W0
    ($1 = 10.0420 Norwegian crowns)

 (Reporting by Nerijus Adomaitis
Editing by Mark Potter)
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))