Key Norway Union Breaks Off Wage Talks, Threatens Strike

   By Kjetil Malkenes Hovland 
 

OSLO--A key trade union in Norway broke off wage negotiations with a major employer association on Tuesday, threatening a strike from April 3 that would affect 800 companies including key exporters and suppliers to the country's oil sector.

The 147,000-member Norwegian United Federation of Trade Unions--or Fellesforbundet in Norwegian--said it had decided to end wage talks with the Federation of Norwegian Industries. The parties will now enter a period of forced mediation handled by Norway's National Mediator.

A potential strike would start on April 3, affecting 26,000 workers across 800 Norwegian companies, the union said, including oil-service companies such as Aker Solutions ASA (AKSO.OS), Bilfinger SE, Beerenberg Corp. and Kvaerner ASA (KVAER.OS).

Workers at unlisted oil-sector suppliers like Westcon Yards and Aibel would also be affected by any industrial action, including 583 employees at Aibel's yard in the west-coast city of Haugesund, where the drilling platform for Statoil ASA's (STO) giant Johan Sverdrup oil field in the North Sea is currently under construction.

Some employees at key exporters in Norway's traditional onshore industries would also be affected, including aluminum producer Norsk Hydro ASA (NHY.OS) and defense contractor Kongsberg Gruppen ASA (KGS.OS).

The outcome of the private-sector wage talks will set the bar for upcoming negotiations between other major unions and employers' organizations in Norway.

Write to Kjetil Malkenes Hovland at [e-mail]

(END) Dow Jones Newswires

March 29, 2016 09:56 ET (13:56 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.