WORKING ON THE NORWEGIAN SHIPYARD INDUSTRY

(Updated February 2011)

About the industry

Norwegian Shipyards direct their business activities towards four main markets: offshore vessels, advanced fishing vessels, passenger/car ferries and specialised coastal vessels. All together there are 75 yards which are focusing on new building and ships repair. There are approx. 25 pure new building yards, a number which has been almost stable the last decade. One shipyard, however, is operating very well both in new building and ships repair, even though there are two different ways to operate as to disciplines. During the last 10 years three groups of shipyards have been established: STX OSV (Aker Yards), Bergen Group and HavYard Group. The number of operating shipyards within these groups remains the same as before. The big scale down of yards in Norway was in the 1975 and 1990. Even if we consider some of our shipyards as large, they are categorised as medium or small shipyards compared to European standards. The high wage levels in Norwegian industry force the ship yards to compete on the construction and delivery of advanced vessels for offshore or specialised trades. The global demand for new ships has gained after the financial crisis in 2008 which put the contracting on halt. Norwegian shipyards have improved very well on new orders in 2010, and have an order book in the beginning of 2011 which has remained the same over the last 2 3 years. A horizon of 1 - 2 years is normal. Norwegian yards build specialist ships with a high level of expertise. The hulls are built in low cost countries, often in shipyards where the Norwegian yards have interests. Despite the fact that the official subsidy is taken away, the hulls are more complete than ever when arriving at the Norwegian yard. This means that the workforce often has a high level of competence. Shipbuilding is vital to many local communities along the Norwegian coast and in many instances, the shipyards are cornerstone companies.

What is the demand for workers in the Shipyard industry?

After a large decline of employees in the mid seventies, the employment level in the Norwegian shipbuilding industry has been very stable ever since. Today, the Norwegian shipbuilding industry, including the equipment industry, employs directly approximately 20.000 people. The shipyards employ 5.000 persons. The short time employees, hired labour, are about 3.500 in the shipyards. The maritime industry however, including shipyards, ship owners, equipment industry and services employs approximately 90.000 persons. Norwegian maritime industry is an innovative sector much based on human resources and competence. The serious situation with lack of orders in the period 2001 2004 forced the yards to alter their production and number of employees. After that, the number of employees has levelled back to focus on core skills and outsourcing.

Today it is common for hulls to be built in low cost countries and towed back to the shipyard in Norway. Romania, Poland, Baltic countries or Ukraine are good examples. The Norwegian yards have even bought shipyard facilities in third countries as the above mentioned together with Brazil and Vietnam. The division of work indicates that to a far greater extent than before, Norwegian yards are specialising on the more complex aspects of shipbuilding where technical skills and expertise are in demand. To a very large degree, shipyards in Norway have made use of migrant labour from EU/EEA particularly the new EU member countries. Much of this has been on a short-term basis/hiring through Norwegian and foreign recruitment agencies. Many of the foreign workers, who are permanently employed, started out as contract workers. Due to the state of the market there is currently a rather small need for recruitment within the Norwegian shipyard industry. Some hiring occurs, however, especially of engineers, but also of skilled labour as for instance plumbers, ship electricians, sheet metal workers.

How to find a job within the shipyard industry?

For vacancies you may look up the Norwegian Employment and Welfare Service homepage (www.nav.no ,-only in Norwegian). Choose Ledige stillinger Select the Kategori Industri, bygg/anlegg, hndverk og verkstedsarbeid and then select region(s). Enter relevant key words (sveiser, verft etc.) in the text box below. For access to vacancies via telephone, call NAV Service Centre: (+47) 800 33 166. Opening hours: 08.00 - 15.30. The same vacancies are to be found at the EURES mobility portal. Not all employers advertise their jobs so it is a good idea to get in direct contact with potential employers. You will find information about websites and addresses in Yellow Pages via the web or the telephone directory. General information about working and living in Norway is available on www.eures.no/english

Language, education and training requirements

There is an increasing demand for the Norwegian Language in the Norwegian ship building industry. This is due to the growth of unemployment among Norwegian ship workers. Sometimes a command of English is sufficient, based on solid professional skills. To apply for a job in Norway, you MUST have a CV in English or in a Scandinavian language. You should have most of your documents translated into English. If you are looking for a skilled job in Norway, you should have a certificate of competence or qualification certificates showing that you have passed the courses required. These should be in English. Norwegian employers always ask for documentation/certificates that provide evidence of competence and qualifications.

Wages and Taxes

Traditionally there have been differences between the wages of contract workers and those permanently employed. To remedy this one has decided to standardize the wage rate within the shipbuilding and offshore sector.Thus, a minimum wage rate of NOK 138, 07 per hour for skilled workers and NOK 125,56 per hour for non-skilled workers with experience and knowledge has been introduced for the industry. For non-skilled workers in general the minimum rate per hour is NOK 125, 56. Special rates apply for overtime work and work on holydays. Many yards offer workers housing/temporary accommodation and subsistence with this being deducted from wage packets. For foreign workers particularly, this is a normal arrangement.

When you work for a Norwegian employer, you are required to pay tax in Norway. If you reside in Norway for less than six months, special tax rules apply. Bring your employment contract and passport to the nearest tax office (skattekontor) and apply for a tax card (skattekort). If you start working without a tax card, the employer will deduct 50% tax. Otherwise the tax usually amounts to around 1/3 of your pay. See the Norwegian Tax Authority (www.taxnorway.no) for more information.

Important things to consider

There is a very strong focus on safety in the shipyard industry in Norway. The yards are regulated by very strict Norwegian legislation in this field and are subject to frequent inspections .It is therefore extremely important that the safety instructions given are respected. HSE courses will be given and HSE information is handed out to everybody working in the yard vicinity. If one breaks the safety rules, this will be sufficient grounds for dismissal. You will find information about terms of employment at the Labour Inspectorate and also safety requirements for places of work in Norway.

Umbrella organisations

www.nssm.no (Norwegian shipbuilders) www.norskindustri.no (Federeation of Norwegian Industries) www.lo.no (The Norwegian Confederation of Trade Unions) www.ncemaritime.no (Norwegian Centre of Expertise, Maritime)

Various shipyards: (a selection)

www.havyard.no www.stxosv.com www.um.no www.ulsteingroup.com www.klevenmaritime.no www.bergengroup.no www.batservice.no www.fiskerstrand.no For more yard addresses, you can search Yellow Pages (search word: shipbuilders and yards)

Related information

www.atil.no (Norwegian Labour Inspection Authority) www.udi.no (Norwegian Directorate of Immigration)