Norway wage talks start on Tuesday with pensions in crossfire
By Gwladys Fouche
OSLO (Reuters) - Norwegian oil unions and employers start three days of wage talks on Tuesday, with pensions on the agenda two years after the issue led to a strike that paralysed Western Europe's top gas supplier.
Three unions representing close to 16,000 employees working for oil companies, drilling operators and catering firms to the offshore sector will negotiate work conditions this week and unions said pensions would be on the agenda this year.
"An important issue will be pensions," said a union source, who declined to be named as demands had not yet been delivered to the negotiating parties. "We want to be able to discuss pension conditions."
Pensions were not part of wage talks last year. But in 2012 about 10 percent of Norway's 7,000 offshore workers downed tools for 16 days demanding retirement with full pensions be maintained at 62.
The strike cut Norway's oil production by 13 percent and gas output by 4 percent and pushed oil prices to over $100 per barrel.
The government ordered an end to the strike, leaving the pensions issue unresolved.
There could be little appetite for a strike this year among some trade unions. "We are conscious of the industry's challenges," said a separate union source.
Cost inflation in Norway, the world's seventh-largest oil exporter, has led to several oil projects being put on hold, including Statoil's $15.5 billion (9.18 billion pounds) Johan Castberg project and Shell's multi-billion dollar project to increase recovery at its Ormen Lange gas field.
Oil workers in Norway earn an average of 65,400 crowns (6,510 pounds) per month according to Statistics Norway. For consulting firm Hays, these are the highest wages in the world.
Talks are due to finish on Thursday and if they fail, a national mediator will be appointed, who will decide when the parties will next meet. A breakdown in mediation would lead to a strike but the government may decide to impose a deal to avoid industrial action.
"We hope to have good discussions and that we can find solutions that both the unions and we can be content with," said Eli Ane Nedreskaar, a spokeswoman at the Norwegian Oil and Gas Association, which will negotiate on behalf of employers.
Wage talks for suppliers to oil firms will take place on May 13-15 while negotiations for those working on mobile offshore installations will take place on May 26-28.
Norway produced 1.46 million barrels of oil per day and 109 billion standard cubic metres of gas last year.
(Editing by Susan Thomas)
