Norwegian rig workers’ unions and The Norwegian Shipowners’ Association have reached a settlement on wages increase, avoiding a strike that would have otherwise kicked off today on several offshore installations.

The talks had gone to overtime, as the deadline to reach a deal had been set for midnight.

At two a.m. on Thursday, under the mediation by the state mediator, the parties agreed upon a general salary increase of 1 percent, or at least 5.500 crowns per year, per person. The agreement covers around 9000 workers.

This means that a strike on several offshore rigs and production units has been avoided. It had been reported that around 600 workers would have stopped their work had the negotiations failed.

Jakob Korsgaard, representing the employers, said that there had been no room for the wages to go up, considering the state in which the industry is, with cancellation of rig contracts, job cuts and a dramatic drop in activity levels.

However, he said, with the imminent risk of a strike, which would have been destructive for the industry, “we are pleased that we reached an agreement.”

Source: www.offshoreenergytoday.com

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