Norway intervenes just before lockout threat expiry

OSLO — Norway’s government ordered on Monday a last-minute settlement in a dispute between striking oil workers and employers in a move to alleviate market fears over a full closure of its oil industry and a steep cut in Europe’s supplies.

The strike over pensions has kept oil prices on the boil as a lack of government action to avert a plan by the oil industry to lock out all offshore staff from their workplaces has taken markets by surprise.

Under Norwegian law, the government can force the striking workers back to duty and has done so in the past to protect the industry on which much of the country’s economy depends.

But it has been slow to intervene in the dispute, now in its third week, and did so on Monday only minutes before the start of the lockout, citing potential economic consequences.

“I had to make this decision to protect Norway’s vital interests. It wasn’t an easy choice, but I had to do it,” Labour Minister Hanne Bjurstroem said after meeting with the trade unions and the Norwegian oil industry association.

Leif Sande, leader of the largest labour union Industri Energi, representing over half of 7,000 offshore workers, said workers would return to work immediately.

“It’s very sad. The strike is over,” he told journalists.

The dispute has raised eyebrows in Norway, where oil and gas workers are already the world’s best paid, raking in an average $180,000 a year. Offshore workers clock 16 weeks a year but cite tough conditions for their call for early retirement at 62.

About 10 per cent of the 7,000 offshore workers have been striking since June 24.