The enlargements of the Single Market in 2004 and 2007, have fundamentally altered shipbuilding employers' production and staffing possibilities. After the fall of the Iron Curtain, Norwegian shipbuilders began to offshore hull production and outfitting to countries in central and eastern Europe (the CEE countries) and eventually acquired several Romanian yards. From 2004, Norwegian yards also hired large amounts of CEE workers through temporary agencies and subcontractors. Transforming the mode of production and staffing in the yards, this two-way mobility has been driven by opportunities to increase production, overcome labour shortages, reduce labour and production costs, and adjust more flexibly to fluctuations in markets and production. This enabled the shipbuilding industry to handle a boom in production of offshore supply ships and the ensuing bust after the oil price dived in 2014.
The shipyard industry is part of the Norwegian core industrial relations system, with strong trade unions and employers’ associations. As wages and labour costs are among the highest in Europe, the yards’ competitiveness depends on high quality and productivity.
The dual mobility and outsourcing of work has led to a dualisation of the workforce,and declining employment among local blue-collar workers. Due to numerous examples of inferior wages and conditions among the subcontracted CEE-workforce, the unions in 2008 won through with demands for extension of minimum terms in the collective agreement, fueling tension and legal strife between the social partners. Eventually further re-regulation and enforcement measures were enacted, strengthening the rights and remuneration of migrant workers.
Our overall findings suggest that the two-way mobility of production factors can generate gains both for western and eastern yards and workers. However, the dual mobility has contributed to erosion of the industry’s national skill base and establishment of a flexible segment of migrant workers who are not incorporated in the model of organised labour relations, lacking institutional representation and voice.
Looking ahead, the ongoing turn towards the production of more technologyintensive ‘green’ vessels will require upgrading of qualifications, calling for more investment in vocational training, skill formation and long-term recruitment.
For more information about the publication and the other country reports: European shipbuilding in a globalised market (Etui.org).
The enlargements of the Single Market in 2004 and 2007, have fundamentally altered shipbuilding employers' production and staffing possibilities. After the fall of the Iron Curtain, Norwegian shipbuilders began to offshore hull production and outfitting to countries in central and eastern Europe (the CEE countries) and eventually acquired several Romanian yards. From 2004, Norwegian yards also hired large amounts of CEE workers through temporary agencies and subcontractors. Transforming the mode of production and staffing in the yards, this two-way mobility has been driven by opportunities to increase production, overcome labour shortages, reduce labour and production costs, and adjust more flexibly to fluctuations in markets and production. This enabled the shipbuilding industry to handle a boom in production of offshore supply ships and the ensuing bust after the oil price dived in 2014.
The shipyard industry is part of the Norwegian core industrial relations system, with strong trade unions and employers’ associations. As wages and labour costs are among the highest in Europe, the yards’ competitiveness depends on high quality and productivity.
The dual mobility and outsourcing of work has led to a dualisation of the workforce,and declining employment among local blue-collar workers. Due to numerous examples of inferior wages and conditions among the subcontracted CEE-workforce, the unions in 2008 won through with demands for extension of minimum terms in the collective agreement, fueling tension and legal strife between the social partners. Eventually further re-regulation and enforcement measures were enacted, strengthening the rights and remuneration of migrant workers.
Our overall findings suggest that the two-way mobility of production factors can generate gains both for western and eastern yards and workers. However, the dual mobility has contributed to erosion of the industry’s national skill base and establishment of a flexible segment of migrant workers who are not incorporated in the model of organised labour relations, lacking institutional representation and voice.
Looking ahead, the ongoing turn towards the production of more technologyintensive ‘green’ vessels will require upgrading of qualifications, calling for more investment in vocational training, skill formation and long-term recruitment.
For more information about the publication and the other country reports: European shipbuilding in a globalised market (Etui.org).
