Professional Documents
Culture Documents
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Employee
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486
Received September 2001
Revised January 2002
Accepted January 2002
The current issue and full text archive of this journal is available at
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Norwegian workforce
involvement in safety offshore
Regulatory framework and participants'
perspectives
Susan M. Hart
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Methodology
Given the focus on participants' voices and the need to probe further than the
formal framework to understand the process in practice, a qualitative
methodology was selected. Selection of the Statfjord field was made on the basis
of access; it is extremely difficult to travel offshore for research purposes. In this
respect, the author would like to acknowledge the assistance of the Federation of
Offshore Oil Workers Union (OFS) and their full-time representative at Statoil,
who had worked on Statfjord B for 12 years, been a senior safety delegate
during his employment there, and who accompanied me offshore.
Information was collected during a four day stay on the Statfjord A and B
offshore oil and gas platforms operated by Statoil in the Norwegian sector of
the North Sea, and while onshore in Stavanger during June 2000. Some of the
background material was gathered while visiting Oslo, Stavanger and Bergen
in 1999. Research interviews were conducted with safety delegates,
management and union representatives on the working environment
committees, full-time union safety representatives for Statfjord, as well as
union staff specialists. To aid in understanding how Norwegian worker
involvement operated in practice, participants were asked which factors they
felt facilitated and/or hindered the effectiveness of the working environment
process. Two representatives of the government regulatory body, the
Norwegian Petroleum Directorate (NPD) were also interviewed, one of whom
was its expert on working environment committees. Finally, documents from
Statoil, unions, and the NPD were analysed.
The paper continues with an overview of the Norwegian regulatory
framework for worker involvement in offshore safety and health, a short piece
on Statoil and the working environment structure on the Statfjord platforms,
before moving on to the participants' views on its effectiveness. After a brief
consideration of the regulator's perspective, the paper ends with a discussion
and conclusion section which identifies two major themes arising from the
research: the questioning of union influence and the adverse impact of
organisational change.
Worker involvement in the Norwegian working environment
legislation
In Norway, the requirements for worker involvement in health and safety are
enshrined in the Working Environment Act, 1977 (NPD, 1999) and related
regulations for Safety Delegates and Working Environment Committees
(Directorate of Labour Inspection, 1977). The Working Environment Act
(WEA) lists three objectives:
(1) To secure a working environment which affords the employees a full
safety against harmful and physical and mental influences and which
has safety, occupational health and welfare standards that are concurrent
with the technological and social development of society at any time.
(2) To secure sound employment conditions and a meaningful work
situation for the individual employee.
(3) To provide a basis whereby the enterprises themselves can solve their
working environment problems in cooperation with the organizations of
employers and employees and with control and guidance from public
authorities (NPD, 1999, Section 1, p. 7).
According to the WEA, any organization with more than ten employees must
have safety delegates for each department and shift, with a senior safety
delegate to coordinate their activities. A safety delegate's rights include
consultation over the planning and implementation of safety programs,
information at all times, attendance at labour inspections, and the power to stop
dangerous work without any liability for losses suffered as a result (NPD,
1999). This power to stop production in the high cost context of oil and gas
production injects real meaning into the concept of worker involvement.
The WEA also requires that workplaces with over 50 employees establish
working environment committees with equal employer and employee
representation and the inclusion of (non-voting) safety and health personnel.
Those with between 20 and 50 employees must have a committee if either of the
parties request one, and any senior safety delegates must sit on it. According to
WEA regulations, the committee has decision-making powers as well as being
advisory, and it:
. . . [shall] participate in preparing programmes for safety and environment work . . . inspect
the enterprise to chart and evaluate the need for safety and environmental measures . . . give
advice concerning the priority ranking of the enterprise's plans . . . and may propose new
measures (NPD, 1999, p. 10).
It also has the power to force the employer's compliance to the WEA and the
right of access to any labour inspection and police inquiry documents.
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company in 1999 totalled NOK 140 billion (24.7 billion Canadian dollars), its net
profit for the year was NOK 3.4 billion (0.6 billion Canadian dollars), and at
December 31 1999 the company had just over 17,000 employees. It is a leading
player on the Norwegian Continental shelf, with nine producing fields on the
Norwegian Continental Shelf and substantial oil and gas reserves in other
countries (Annual Report and Accounts, Statoil, 1999). Strategically, the
company:
. . . is now implementing a number of measures to become more competitive . . . Major
restructuring involves divesting roughly 20 percent of Statoil's assets. Cost reductions
totaling NOK 4 billion on an annual basis are being pursued from 1998 to 2001 . . . An
international effort will be maintained.
The Statfjord field has been in production for over 20 years, and the company
noted that: `` . . . this field has been by far the most important source of revenues
for Statoil over many years (Annual Report and Accounts, Statoil, 1999, Inside
cover).
The safety delegate system on the Statfjord platforms (A, B and C) follows
the line management structure, so each department, for example, logistics
(lifting, supplies etc.), has three safety delegates (VOs), one for each shift. There
are three senior safety delegates (HVOs), one for each shift. Safety delegate
meetings are held every shift, led by a senior safety delegate, and the platform
manager attends all of these. The safety delegates raise concerns relevant for
that particular shift and any other issues they think should be referred to the
next level of structure, which is the working environment committee at each of
the three platforms in the Statfjord field (called AU meetings). These AU
meetings are held once a month. Normally, a senior safety delegate from one
shift attends, as well as union and management representatives and safety and
health personnel.
Any issues that cannot be resolved at the platform level are referred to the
onshore coordinating working environment committees for Statoil's Statfjord
field, which meet four times a year. There are two of these onshore coordinating
committees. One of them is made up of Statoil representatives only (called SAMU) from the three platforms; the other includes contractor companies'
representatives from all three platforms (called K-AMU). The senior safety
delegates from each platform sit on these onshore, field-level, coordinating
committees. Chairs of the S-AMU and K-AMU committees alternate yearly
between a senior safety delegate and the vice president of the Statfjord field;
sometimes, the K-AMU committee will have a management representative of
one of the contractor companies as chair.
Turning to union representation on the platforms, there are two industrial
unions which compete for largely the same workers, and a small number of
specialized unions. The Norwegian Oil and Petrochemical Workers Union
(NOPEF), affiliated with LO, the mainstream umbrella organization, is now the
largest union presence on Statfjord, with an overall membership in the industry
of 17,000 in catering, drilling and oil service, supply terminals and service,
operations and maintenance, administration and marketing and miscellaneous
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(K-AMU), who was also the deputy leader of a union affiliated to the
mainstream umbrella labour organization (LO); and two safety delegates, both
shop stewards. After the introductions, the senior safety delegate moved
straight away to highlight what he saw as the biggest problem undermining
the effectiveness of the working environment committee system: new forms of
work organization recently introduced in the Statfjord field. It is worth noting
that the workers present apparently agreed with this man's comments
throughout the interview, with different people joining in when they thought
their thoughts were relevant or useful.
In his view, the negative impact of organisational change, largely driven by
cost cutting, could not be resolved through the working environment
committee system. This was because the factors at work were outside the
committee's control, being larger ``social, political and economic trends'' which
drove Statoil in a particular strategic direction, namely, a push for more
efficiency and competitiveness in the context of pressures at the board level to
privatize the government-owned company. In this connection, one of the safety
delegates remarked:
These are global influences. The company doesn't want to spend money on old installations.
They want to build new ones in other [cheaper] parts of the world . . .
The safety delegates gave examples of where they thought that a crucial safety
problem, raised in the safety delegate meetings and working environment
committees, had been rejected by Statoil as impossible to change, and there was
very little anybody could do about it. One problem identified was that: ``they
had lost the fight to keep Polycrown'' (a ``flotel'' moored alongside Statfjord A,
connected by a gangway). Even though platform management had agreed to
keep the accommodation unit, the decision had been reversed at a higher level
in Statoil. It was pointed out that platform A was the oldest platform, with a
broadly similar lay out as the doomed Piper Alpha, the UK rig which had
exploded in a fire-ball in 1988. Despite this, it was equipped only with the oldstyle davit-launched boats instead of the free-fall lifeboats required by
regulations in newer platforms. Statoil was modifying platform A by adding an
accommodation module, a move safety delegates said was not satisfactory
from a safety perspective, in spite of some changes in the location of the
production process to contain a possible fire or explosion. Although Polycrown
was due to be sold and removed in October 2000, the safety delegates remarked
that they had managed to delay this outcome for five years.
The other safety problem raised was the most talked about and was
elaborated upon considerably by the two safety delegates present, with
endorsement by the senior safety delegate. It concerned the cutting of the
original maintenance crew and the introduction of a mobile crew, which moved
between all three platforms. All platforms differed slightly in age and design,
and it was now difficult for maintenance workers to identify with and develop
specialized knowledge about any one platform. Moreover, the few permanent
workers left on any one platform, in the absence of the mobile crew, were
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unable to properly carry out any regular maintenance. For example, the oldest
platform, Statfjord A, needed a considerable amount of maintenance on the
flow lines and it was impossible for the one fixed worker left on the platform to
do this work adequately, causing stress for that individual in addition to
potential safety hazards. The safety delegates had taken up the problem in the
committees but were unable to change the new pattern of work.
They also stated that the maintenance budget had been reduced, and jobs
were left standing for too long. And they were now expected to do the planning
and purchasing of the materials for the job, as maintenance supervisor jobs had
been cut. Overall, then, the safety delegates reported increasing pressures along
with a higher safety risk.
Turning to the full-time union specialists in safety and health, both with
previous experience as senior safety delegates, they also identified new forms
of work organization as the biggest barrier to effective working environment
committees. One, a union leader in the drilling contractor company Smedvig,
outlined the problem as:
Less people doing more jobs . . . The push to be more efficient . . . You can introduce more
automated equipment, but you can't just cut people, because of the need for both routine and
breakdown maintenance.
The safety delegates had apparently raised this issue at working environment
committees and subsequently with the NPD, but had not had any success so far
because of the drive to cut costs. The other union specialist elaborated:
New organizations . . . so small so few people [who] don't have any time . . . in the push for
low manning. New flat organizations with a very small hierarchy . . . they've taken out first
the line leaders . . . Or merged positions, such as the job recently changed to a ``working
environment coordinator'', who used to be nurse. Now this is a double function two jobs in
one and nurses are not independent as they were before.
are given off. When we pump it down in the hole it is under pressure and at a high
temperature when it comes back, we just don't know how dangerous the gas is. This is a
potential danger on both fixed and mobile rigs.
The cement mixing room, another small working area, was hot and noisy as
well as having high levels of vibration. The safety delegates had recommended
a redesign so that the worker would not be sitting directly on top of the cementmaking unit, a suggestion talked about but not acted upon: ``On paper, there is a
plan, but the money is not there yet . . . ''. At this point, a union executive
member in the room remarked: ``[The safety delegate system] works better on
paper than it does in real life. It is mainly to do with money.''
The union experts commented that if the top level managers in Statoil
understood the problems they could save money ``at the other end'', that is,
reducing the levels of sickness from stress, joint problems and chronic fatigue:
Those who started, we now see what they have gone through. Now we know what the cost
has been . . . offshore work is very hard and older co-workers lose their health certificates . . .
Maybe people cannot get old on this job . . . they are not able to retire.
As we would expect, both respondents pointed out how important it was to have
union-appointed safety delegates, in direct contrast with the management view:
First of all, you have to have a strong trade union behind you. You have to know the
regulations very well. We are very well regulated in this country, but you have to have the
guts to use it, with the trade unions in the background to keep the pressure on.
Weaker trade unions mean weaker safety delegates.
However, they saw the rivalry between the five unions at Statoil as an important
barrier to the effectiveness of the working environment committees, a problem
that had been evident ever since the original union on Statfjord, the OFS, had
split into a number of unions. A central point of tension was the different political
positions of two of the offshore unions, one affiliated with the mainstream
umbrella organization, LO, which has close connections with the government
Labour Party, and the other with an independent, and more radical, umbrella
organization, YS. Recently, this tension had increased due to their opposite
positions regarding the advisability of union appointed safety delegates: OFS
strongly advocates an integrated model and NOPEF accepts the separation of
safety delegate and union representative role, as recommended by management.
Views of union staff specialists, beyond the workplace level, were consistent
with those of Statoil's representatives, highlighting the adverse impact on
safety of cost cutting and new patterns of work in general. NOPEF and OFS
staff experts argued that safety was being compromised to cut costs, and gave
two examples: a helicopter crash in 1997, with the loss of 12 lives, caused, they
argued, by Statoil removing a ``flotel'', leading to the daily shuttling of workers
and impossible pressures on the maintenance and coordination systems; and a
badly below-standard semi-submersible rig which was allowed to operate in
Norwegian waters for a number of months before regulatory enforcement
eventually took place. OFS, in particular, was worried about the weakening of
union control over safety due to increased contractual employment and the
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resulting change in patterns of work. Moving to the national level, the LO's
representative on the tripartite ministerial board responsible for implementing
NORSOK, the Norwegian equivalent of CRINE (the UK oil industry's campaign
to reduce costs), remarked during an interview that if staff are reduced: ``safety
becomes much more important'', explaining that workforce involvement is
crucial to ensure there were no unanticipated hazards. He saw new technology
and work organization as big challenges for labour, but stressed the
advantages of Norway's collaborative model of decision making in finding
solutions.
The regulators' perspective
Significantly, NPD officials interviewed raised concerns similar to those of
Statoil's safety representatives. In general, they were concerned at the
reduction in the number of safety supervisors and the new team structures in
the industry, which made it difficult to gain a maintenance overview because
there was no specific coordinating mechanism. As in other oil companies,
Statoil was introducing new forms of work organization along with new
information systems. However, new systems designed for modern installations
(for example Statoil's new floating production vessel, Asgarde A) needed
modification when introducing them to older, more traditionally designed
installations such as the Statfjord platforms, which are fixed to the seabed. In
fact, the NPD had issued orders to Statoil to ensure ``consequence analyses''
were conducted with adequate worker involvement, which they decided was
insufficient initially. Subsequently, NPD's working environment specialist was
seconded to Statoil, and both officials acknowledged the company's later efforts
to address the working environment ramifications of organizational change at
the strategic level.
The working environment expert referred to the growing tension in the
industry between those, mostly in management and the mainstream offshore
union, NOPEF, who believed that the safety delegate function should be
separated from the union representative role, versus those, mostly in the
independent union, OFS, who saw the integration of the two roles as essential
for effective worker involvement. He pointed to the complications caused by the
difference between the operating assumption of consensus in the working
environment process and conflict of interests in union representation.
Nevertheless, he saw the integration of roles as essential in ensuring as powerful
a channel of influence as possible for the individual offshore oil worker.
Discussion and conclusion
Two main themes emerge from this research. One is on the role of trade unions,
and is reminiscent of an earlier UK debate over the extension of onshore
regulations to the offshore. In response to management opinion, there is a
division at Statoil between the largest, mainstream offshore union and its
smaller, more militant rival, about the advisability of trade union officials
working as safety delegates. This increasing tension adds to union rivalry
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