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2.Juni 2018

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Wages settlement 2018
What did we really get?
Comments to each point in the protocol

Attached, you will find the protocol (agreement) that was the result from this year's wages settlement (2018) for the scope of "Agreement between the Norwegian Shipowners' Association and the Norwegian Confederation of Trade Unions and Industri Energi”, the so-called Agreement for Mobile Offshore Units, that applies to the activity of Maersk Drilling Norway.

We intend to comment on each item of the Agreement, in any event, the items that we consider to be of importance to you who are covered by the Agreement.

We will mention that the comments we make are based on the knowledge we possess as participants in the negotiating team and as member of the select committee (a small group within the IE negotiating team who negotiate directly with the NR). It may also happen that employers do not agree with all of our comments.

• Let's start with the general increase of wages, it is NOK 20,000, - per year. This means everyone gets the same add-on, at least those who are on tariff wages. As our tariff matrix contains wage groups ranging from A1 to E. So, of course this inevitably will turn out differently when calculating percentages. This means that the percentage will vary from 2.77% to 3.89% with an average of 3.26%. It must also be mentioned for those particularly interested that the number of persons within the groups are not used in the calculation above, but if we had used a percentage increase of wages this year, all the adjustments would have used the main factor 3.01%.

• The group individually remunerated (group 0 - 0.1 – 1 - 2) is granted a wage supplement within a frame of 2.8% on average, but with a minimum of NOK 20,000, - per. year. This means that if we put all on individual payroll (IA) in a company into one box, then the company will grant a minimum of 2.8% on each individual within IA on average. For example, if the company "Alfa" spends 25 million on salary for IA, they must then allocate at least 700,000, - (2.8% of 25 million) on IA personnel. However, a minimum wage supplement of NOK 20,000, - per IA is set. This may mean that someone gets 20,000, - per. year (minimum), while others may get whatever their company may think is reasonable beyond the minimum increment.
As regards the minimum wage rates, these are also raised by NOK 20 000, - but it is very few companies actually using it. with the exception of catering companies / platform drilling. The reason is that actual current wages are far above the current rates used.
Another point to be be noted is that this is the minimum framework. The company may therefore offer individuals in IA the sums the company find appropriate.

• The night shift allowance is increased by NOK 4, - per hour, which amounts to just over 5%.

• The compensation for public holidays is increased by NOK 75, - this represents almost 4%.

• Cabin sharing (Section 6.12), not used very much today, is increased in line with the protocol between LO / YS and NHO to NOK 856, -.

• For Platform Manager with 10 years of employment, the notice period will be 6 months. The differences between the tariff agreements IE / DSO are hereby offset.
For Platform Managers by us at MDN, this will be of no importance if they are not employed in Maersk Drilling Norway as.

• The Safety Insurance, or the Loss Off License Insurance (loss of health certificate) is increased by 2 G (NOK 193 766, -) to 10 G (NOK 968 830, -).

• New appendix on the joint arrangements for AFP and Severance Pay is added in line with the settlement between LO / YS and NHO. Practically,this is of no concern right now for those employed in MDN.

• Committee work on the development of the Collective Agreement for mobile offshore units etc. to be established. The Committee has a number of tasks, more specifically, we refer to the negotiated Collectice Agreemjent protocol. The Committee will present its work to the negotiating committee in 2019.

• Entry into the minutes related to pension. This is simply a continuation of previous protocols. The reason is that the Law on Pension Insurance for Seamen has not yet been completed. Admittedly, there is a limitation, if you are employed by the company after 1 June 2018, the transitional regulation does not apply. Here, of course, there are some exceptions. Personnel re-employed on preferential rights or subject to transfer of undertaking. The present joint committee that has worked on pension will continue its work.

• The preferential right for re-employment for 2 years are continued until the next wage settlement in 2020. This applies to personnel who, due to operational downsizing lose their work. In MDN we have had this right since 2007 in our local protocols.

We are partially satisfied with the settlement, but we missed out on some technical claims that we promoted. We are also not pleased that there were no changes to the wage groups.
Two subjects must be adressed.
- Industri Energi has signaled to the Norwegian Shipowners' Association that they do not accept any further cuts in the catering service and that the employers will be invited to cooperation with Norwegian Oil and Gas on the project "Lift for catering".
- The committee to be established should also review the Collective Agreement, whether it will be possible to make the Agreement more "understandable".

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