The Norwegian Union of Industry and Energy Workers (Industri Energi) has notified the Norwegian Oil and Gas Association that it is breaking off negotiations on pay and conditions under the oil service agreement.

To remind, Industri Energi opted to postpone negotiations scheduled for early June until after the offshore settlement had been agreed. Norwegian Oil and Gas accordingly resumed talks with the union on Tuesday, July 5.

However, Norwegian Oil and Gas has today received an announcement from Industry Energy that it has chosen to break off the negotiations.

“This would normally mean that the settlement goes to mediation. When that might happen is not known,” the employers’ representative said.

The employers have pointed out that the union has subsequently gone out to the media with a claim that the mediation result reached with the Norwegian Union of Energy Workers (Safe) was illegal.

“We can’t see how this agreement can be illegal,” says Jan Hodneland, lead negotiator at Norwegian Oil and Gas. “Safe broke off the talks and notified withdrawals of labour to the National Mediator in the normal manner.

“Once the National Mediator has received such notice, they are obliged to call the two sides in for mediation. Safe requested that the mediation should terminate at 24.00 on Wednesday 6 July. The employer is then obliged to attend and participate in the mediation process.”

He adds that both unions have been offered the same agreement, which is in line with the framework established by the lead sector.