02.October.2020

What did we really get?

Comments on each item in the minutes
What did we really get?
Attached you will find the Minutes (Agreement) signed at this year's wage settlement (2020) for the tariff range "Agreement between the Norwegian Shipowners' Association and the Norwegian Confederation of Trade Unions and Industri Energi", the so-called Agreement for Mobile Offshore Units, the one we are using at Maersk Drilling Norway.

We intend to comment on each individual point in the Minutes (Agreement), at least the points that we believe are important to you who are covered by this Collective Agreement.

We must mention that the comments we make are based on the knowledge we possess as participants in the Negotiating Team and as a member of the Select Committee (small group selected from the total Negotiating Team which in turn negotiates directly with NR). 
And, let be that the employers may not agree with our comments.


• Let us start with the general increment which is 1.7%, however at a minimum of NOK 13 693.00 per year, which is added to the wage matrix line 2 "annual wages vacation incl.” in the applicable wage matrix for groups A1-E.  

Generally we have used Group C6 as a basis for the Settlement, in reality we this time move the basis to A1-6. This means that in fact the general increment is 2.2%, not 1.7% as it actually is for Group A1-6. We have not expressed that we should "hide" the settlement from the public, but it looks nicer for the employers when this is presented to the employers fora. In reality, the wage increase is between 1.75 - 2.4%.  In addition, there are variable increments that we have not taken into account when calculating the total increase at the Settlement.

• The group Individually Remunerated (group 0,0,1,1,2) is given an increase in salary within a limit of 1.7%, however at a minimum of NOK 13 693.- per year. This means that if we put everyone Individually Remunerated (IR) into one box  in each individual company, then the company must pay a minimum of 1.7% to each individual IR on average. For example, if the company "Alfa" spends NOKs 25 million on salary for all their IR’s, then the company must distribute a minimum of NOK 425 000.- (1.7% of 25 million) on their IR’s. However, a minimum wage increment of NOK 13 693.- per IR has been agreed. This may result in that some gets 13 693, - pr. year, while others may get whatever the company likes on top of the agreed minimum.

When it comes to the minimum wage rates, these are also raised by NOK 13 693.- but actually very few companies are using these rates because the current level of wage rates are far above the minimum, with the exception of catering companies / platform drilling. 
Another fact that should be noted is that this is the minimum framework. So, the individual company may offer increments of their own choice to their IR’s. 

• The Night Shift Allowance is increased by NOK 1.50 per hour, this amounts to approximately 2%.

• Allowance for public holidays is increased by NOK 25.-, this amounts to almost 2%

• Sharing of single cabins (clause 6.12), currently very little used, is increased in line with the protocol between LO / YS and NHO to NOK 907.-.

• The Safety Insurance, or Loss off License Insurance we have (loss of Health Certificate) will be discussed before premium renewal summer of 2021. 

• " The Pensions Committee immediately to resume work to establish a pension scheme to be valid from 1 January 2020 on the basis of the protocols and discussions that have taken place until the recently received reply letter from The Financial Supervisory Authority og Norway (Finanstilsynet). It is open to  negotiate subjects on pensions with right to industrial actions at the interim settlement 2021 if the committee does not reach an agreement."  

In short, this means that we have the opportunity to go on strike next year if the pension committee does not agree. This committee consists of representatives of the employee organizations and employers within the scope of the Collective Agreement with NR for the mobile offshore units.

• The extended preferential right to re-employment will be continued for 2 years until the next main settlement in 2022. This applies to personnel who lose their jobs due to operational restrictions. We at MDN have had this right since 2007 in our local protocols. 

• There will be an end to the fact that some employers have stopped advancing sickness benefits. This means that you shall receive your salary from the employer during the period you are on sick leave. So, you do not have to contact NAV, the employer will claim sickness benefits refunded from NAV.  

We are partly satisfied with the settlement. We missed out on many of our claims forwarded on technical improvements. Further, we are also not satisfied that there were no changes within the wage groupings. The fact that MAF makes up about 10% of the votes in the Negotiating Team this was not enough to get the rest of the Team to agree on claims for technical improvements to the Collective Agreement and changes in the wage groups, unfortunately.

Here is the protocol
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