Norwegian Oil Services Strike Averted as Salary Increases Agreed

Norway’s Industri Energi union and the oil and gas producer lobby reached an agreement on pay, averting a strike at companies including Halliburton Co. (HAL), Schlumberger Ltd. (SLB) and Baker Hughes Inc. (BHI)

The deal, negotiated with the Norwegian Oil and Gas Association overnight, includes increasing the compensation for Industri Energi 6,700 members working in the oil services industry by 24,000 kroner ($3,877) by Jan. 1, Industri Energi and the producer lobby said in separate statements on their websites today. The union will now ask its members to approve the terms, it said.

A failure to reach an agreement would have resulted in a strike by 78 Industri Energi members working at oil-service companies, which deliver services and products ranging from well maintenance to engineering. Today’s settlement follows both Industri Energi and the Norwegian Union of Energy Workers Safe breaking off talks in May, opting instead for mediation at a later date. Safe will discuss the same agreement on Aug. 15-16.

“We have stretched ourselves as far as we could in the mediation and now hope that Industri Energi’s members approve the mediation solution,” Jan Hodneland, the chief negotiator for Norwegian Oil and Gas, said in a statement.

To contact the reporter on this story: Niklas Magnusson in Stockholm at nmagnusson1@bloomberg.net

To contact the editors responsible for this story: Tasneem Hanfi Brogger at tbrogger@bloomberg.net Zoe Schneeweiss, Andrew Langley

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