Study of socio-economic effects of requiring Norwegian wages and working conditions for seafarers
Oslo Economics has, together with Wikborg Rein law firm, investigated the possibility of requiring Norwegian wages and working conditions for all seafarers working on ships located in Norwegian waters and on the Norwegian continental shelf. Oslo Economics has examined the socio-economic consequences of such a requirement. The investigation looks at the consequences associated with both the competitiveness of Norwegian shipping companies and Norwegian seafarers, the profitability of the markets affected, as well as the effect on the labour market, employment of Norwegian seafarers and the maritime cluster. In addition, Oslo Economics has considered the potential trade policy consequences of the requirements.
Overall, the predicted consequences are uncertain and depend, among other things, on the level of wage and working conditions requirements, how the different players adapt, and how exposed to competition the affected vessels’ activity is towards segments that are not faced with the same requirements. The employment of Norwegian seafarers could increase as a result of such a requirement, but increased costs in the longer term could lead to reduced profitability for the shipping companies and reduced employment overall.
Read about the report on the webpage of the Ministry of Trade, Industry and Fisheries (in Norwegain):
Read the full report (in Norwegian): https://www.regjeringen.no/globalassets/departementene/nfd/dokumenter/rapporter/vurdering-av-muligheten-til-a-kreve-norske-lo.pdf