Norway oil worker strike to begin
74 Workers from the Norwegian state-owned oil company Equinor will go on strike today after the members of one of its unions—Lederne—rejected a wage deal made with the company.
The dispute with Lederne members relates to a rejected 4-5% wage hike which is below Norway’s current inflation level of 5.7%. While Lederne is the smallest of Equinor’s three unions, much of its membership consists of senior administrative staff crucial to the operation of offshore refineries. It is expected that four percent of Norway’s total oil production will be affected by the strike. While the immediate consequences of the strike are likely negligible, a continued standstill in wage negotiations could lead to further and larger strikes in the medium-term. This would have significant geopolitical consequences—Norway is a key supplier of European oil, and this role has grown since the EU approved a partial oil embargo against Russia.
Expect Norway’s oil industry to ultimately cave to union demands—the sector has recorded record profits due to high global prices this year, and its increased importance as a supplier to the EU will likely cover any financial shortfalls from higher wages. These high international prices are likely to cover higher labor costs.
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