Legal action against Rowan Drilling for unlawful dismissals

RDUK Redundancy Selection Matrix-
RDUK Redundancy Selection Matrix-

torsdag 13. august 2015

Industri Energi is preparing lawsuit against Rowan Drilling UK after eight British workers lost their jobs on the Norwegian shelf as a result of downsizing in the UK, without warning or notice. – On the Norwegian continental shelf the Norwegian Working Environment Act applies, says union secretary Fraser Knox.

Rowan Drilling is experiencing tough times on the UK shelf and the company has lost several contracts. It leads to mass dismissals which now also have consequences for British workers on the Norwegian shelf – despite the fact that the company’s three rigs in this country have long term contracts with ConocoPhillips and Lundin.

The rig company, headquartered in Houston, took namely with several British workers when they sent rigs from the UKCS to contracts on the Norwegian shelf. The workers were then presented with a supplement to their contracts stating that they are «seconded» to Norway.

Contractual relationship is not regulated in Norway

There is no Norwegian translation for this contractual relationship, which implies that the workers are employed in the company’s UK division – but that they work on the Norwegian continental shelf and therefore should get Norwegian wages and working conditions.

The Company believes, however, that «seconded-agreement” can be terminated with immediate effect. The workers thus are called back to the British parent company, where there is no longer any vacant position for them. In practice, they are sacked with immediate effect.

– The main problem is that we do not have anything that regulates this type of «secondement-contracts” in Norway. The law does not tell anything, whether they are allowed or not allowed, the law says nothing at all about them, but the contract says the employees will work on the Norwegian continental shelf. As we see it, all who work on the Norwegian continental shelf is subject to Norwegian regulations. We have rules and terms of notice to relate to whatever name of the contract and how they are managed, says National Secretary Gro Losvik.

– Disposes of sick and individuals they do not like

– So far, eight British workers have lost their «Seconded-Agreement». We see this as termination of rights and conditions in Norway. We believe that Norwegian regulations on dismissal applies, says National Secretary Fraser Knox.

He also shakes his head regarding the selection criteria used by Rowan Drilling UK, which stands in sharp contrast to the current regulations in Norwegian working life. According to the schematic diagram which is the basis for the evaluation of the workers, they receive grades on the basis of absence from work during the last twelve months, disciplinary records, quality of work performed and eventually seniority.

Seniority, which is the main criteria when downsizing in Norway, is only of significance in cases where two employees get equal overall score. In practice, this selection criteria gives the company reasons to get rid of those who have been ill and individuals they do not like.

RDUK Redundancy Selection Matrix-PDF

Individuals suffering from stroke and heart attack with too much absence

– We have an elderly man who suffered a stroke. He was six months in a coma, but survived. He still has paralysis, but have a hope of getting back to work and he is still within the twelve months the individual is allowed to be on sick leave with full pay and has expanded employment protection pursuant to Norwegian regulations. This man got his contract terminated, says Knox.

– Another person suffered a heart attack at work and was on sick leave for a period. When he came back he had to do a breathalyzer test at the heliport. The test was positive although he had not been drinking any alcohol, this also was confirmed by the blood-alcohol test taken afterwards. But the man lost his offshore hitch and got paid leave. The problem is that this was considered as absence, and together with the sick-note received as a result of the heart attack meant that man also got his employment contract terminated, Knox adds.

He describes the situation as alarming. Other individuals who have received positive feedback for the work they have performed, have suddenly gotten lowest character when leaders should assess the quality of the work they do.

– In my opinion Rowan Drilling UK does not treat employees as humans. They do not care. They’re just a number, says Knox.

About 20 cases in total

Deputy leader in Industri Energi Rowan, Kent Hettervik, is shocked at how bad the British colleagues are treated. He says it concerns far more than the eight persons. Probably there are altogether about 20 people who have received what Industri Energi believes are unlawful dismissals.

We also see that they are replaced with contracted and new British workers who apparently are good buddies with management on the rig. It is familiarity and friendship that applies, says Hettervik.

Presently several legal actions are prepared, both individual and one general to get a Court ruling that the Working Environment Act applies to everyone working on the Norwegian shelf. He thinks it’s a shame that one has to face the company in court in this way.

– How is the situation for the Norwegian employees in Rowan?

– The company is far more cautious about the Norwegian employees. We have three rigs on the Norwegian continental shelf, which all have contracts until 2017 and 2018. Therefore, we are lucky in light of the current market.

– But we are not happy with the way our British colleagues are treated, and the board of our local union has agreed to send a harsh letter to management in Houston where we ask them to come to Norway and negotiate on how people should be treated. The present situation is intolerable. All and everyone has obligations and family and all have the law on their side. It should not be possible to be dismissed directly, on the spur of the moment, he says.

Fearing contractual form will spread

Hettervik also fears that the contractual form will spread, especially when times turn and companies will re-man.

– We know that other companies have started looking into it, among other things, there is a company providing Norwegian workers who will work on the Norwegian Continental Shelf with Singapore employment contracts. This is an attempt to avoid Norwegian regulations in a way that is unwanted.

– You may not smoke hashish in Norway because it is allowed in Amsterdam, and one may not impose death sentences because it is the law in the United States. In Norway Norwegian laws applies, he says.

Knox and Losvik will now complete the documents disputing dismissals and notify lawsuits against Rowan Drilling. According to the Working Environment Act the workers unlawfully dismissed are entitled to stay in their position until the court has come up with a judgment.