Common use of Offshore compensation Clause in Contracts

Offshore compensation. The total wage in item 4.2 (line 2) includes a 47% offshore compensation. Offshore compensation includes payments for the special conditions which offshore work entails and which are not compensated otherwise in the agreement. 4. A Company-adjusted wage systems for operator companies 1. The wage system described in item 4 shall not prevent the local parties from reaching a special agreement on a separate wage system adjusted to the company in replacement of the wage system under this agreement. Such an adjusted wage system must meet the following criteria: • The adjusted wage system must be a matrix system with position groups, seniority provisions and specification of the employee’s wages. For position groups higher than the present wage group A, the local parties may agree on individual remuneration. • Any bonus payments may be combined with the company wage system and must be based on demonstrable improvements in performance and/or results in the company/group. • Local negotiations must be held until an adjustment date which is 1 June each year. The level of the adjustment shall not be less than the adjustment given in the shelf agreements pursuant to item 2 a), unless the parties have agreed otherwise. • Any special local agreement shall have the same duration as this agreement. • The local wage system must be approved by the union and the national association before being implemented. The same applies to future changes. • This system is a trial arrangement for the contract period 2000-2002. • If the local parties are unable to agree on a company-adjusted wage system, the wage system in this agreement shall apply fully. 2. New wage adjustment clause in the shelf agreements: At 1 June each year, negotiations shall be conducted between the national association and the unions. In connection with this, adjustments shall be made to the agreement’s wage matrix, which must: a) Correspond to the regular, annual wage settlement as per 1 June. b) Ensure that wage developments under this agreement are approximately the same as the average wage development of the company-adjusted wage systems. Any bonus payments in the operator companies are not included in the calculation basis for wage developments. Even if the right to automatic wage adjustment according to item 4A 2 b) lapses, this shall not prevent the organisations from demanding compensation for bonus paid in the oil companies. The Norwegian Oil and Gas Association will be free to consider such demands.

Appears in 2 contracts

Sources: Collective Bargaining Agreement, Collective Bargaining Agreement