Prosafe drives social dumping on a large scale

fredag 1. februar 2019

“Prosafe cuts at least 150 employees and offers to hire them back with 40 percent lower wages. This is large-scale social dumping” says National Secretary Asle Reime and Negotiator Fraser Knox in Industri Energi.

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Fraser Knox and Asle Reime in Industri Energi says Prosafe runs a race to the bottom. Photo: Atle Espen Helgesen

Prosafe’s two Floatel’s, «Safe Scandinavia» and «Safe Zephyrus», will leave the Norwegian shelf during spring. «Safe Scandinavia» has not received a new assignment and it is planned to be warm stacked, whilst the «Safe Zephyrus» has engagement on the Claire Ridge on the UK shelf.

In this connection, the company wishes to terminate their jobs in Norway. At the same time, the company offers the people to apply for their own jobs, through a Cyprus registered staffing agency, with a 40 percent lower salary. Internationally, the company does the same, but with a voluntary redundancy package.

– We will only accept redundancies that follow Norwegian rules. However, we do not accept termination for international contracts, says Asle Reime.

He points out that Prosafe has always followed Norwegian law and regulations while they have been on the Norwegian shelf. – But now that they plan to leave the Norwegian shelf, they have started a process that is completely unacceptable. We are concerned about our members who are at risk of losing their jobs and being forced into a bad deal, says Reime.

Race to the bottom

Prosafe is setting up a new business model where they go from permanent employees to renting the people through the staffing agency. – Through the Norwegian agency OSM, the employees must relate to a number of contact points in several different countries. The contract of employment they offer is aligned to Cypriot law, but must comply with Singapore laws. The staffing office itself is in Poland, says Negotiator Fraser Knox in Industri Energi.

– It is unheard of and scandalous. Prosafe runs a race to the bottom. What they do is social dumping on a large scale, says Reime and Knox

In addition, the company risks losing many employees who are not willing to accept such low wages. – Then one loses competence and that can have an effect on safety, says Knox.

Wouldn't meet the Union

Industri Energi has requested a meeting with Prosafe, but the company would not meet the union.

-We think Prosafe’s behaviour is so worrying that we will raise the issue with several operating companies to emphasise this is contrary to their ITF minimum standard policy. We will also send a letter to the International Transport Federation (ITF) explaining the situation, asking them not to sign any agreement with the company.

Industri Energi will also support its British sister associations Unite, RMT and Nautilus who have similar issues with the flotels on the British side of the border.

-If Prosafe are implementing these plans, we promise to make it hot for them once they want the rigs back on the Norwegian shelf, says Asle Reime.

He reminds that Prosafe is a Norwegian company registered on the Oslo Stock Exchange.

The Offshore Coordinating Group (OCG) Trade Unions, RMT, Unite and Nautilus International are now calling on the UK Operators and regulators to intervene in one of the most appalling examples of “social dumping” the Trade Unions have encountered. Read more in the attached release from OCG.

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