Norway's oil and gas production is at risk of total shut-down after pension talks in the industry broke down yet again.
This is the third set of discussions to have failed to reach a resolution and the oil industry has now threatened to enforce the lockdown as of Tuesday in an effort to put an end to the strike.
The OFL has said that it believes the only option left is to lock out all of its 6,515 oil and gas workers that are covered by offshore pay agreements using emergency government powers enabling it to end a stike in the event national interests are being harmed.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The three largest unions in the country have now been on strike for just over two weeks over the dispute in which the offshore workers are making demands to retire with a full pension at 62, instead of the average age of 65.
Since the strikes started on June 24th, oil production from the country has suffered a 13% decline in oil production and a 4.0% reduction in gas output, costing the country an estimated 2.9bn kroner (around £300m).
The Chief Negotiator at the Norwegian Oil Industry Association Jan Hodneland said: "Oil company employees have an average annual income of 1m Norwegian kroner (£105,000) and a retirement age of 65. This already makes them Norway's pension winners. They've nevertheless opted to use their power to win even better terms. We're living longer, so we've also got to work longer."
NR
