The labour conflict on the Norwegian continental shelf is brought to an end. The Government has decided to make use of compulsory arbitration to end the ongoing labour conflict between The Norwegian Oil Industry Association (OLF) and the Federation of Oil Workers Trade Unions (OFS) and the Norwegian Association for Supervisors. The wage negotiations 2004 will be resolved by the National Wages Board.

According to the Government’s decision it is also forbidden to start or continue strike or lockout in this dispute. The employers’ side had given notice for a full lockout from 24 June 2400 hrs.

- Such an escalation of the conflict would have resulted in a stoppage of the oil and gas production on all fields on the shelf and would entailed huge economic consequences to society. Norwegian natural gas is delivered on long-term contracts, and a cease in production would seriously damage Norwegian credibility as a reliable gas supplier. A production stoppage would also have a negative impact on the international oil market and cause a rise in prices. The negotiation situation between the parties was at a deadlock, and it was reason to believe that the conflict would be long-lasting. In this situation the Government has concluded that there was no other solution than to let the conflict be resolved by arbitration, declares the Minister of Labour and Social Affaires Dagfinn Høybråten.

According to the Norwegian Constitution § 17 the Government is given legislative powers when the Storting is not in session.