It definitely did not go as planned when the cruise ship “Viking Octantis” was built at the Vard Søviknes shipyard outside Ålesund. Last year, when news accompanied the police, the Norwegian Tax Agency and the Norwegian Labor Inspection Authority on inspections, a number of violations of the law were discovered. The main control was part of “Operation Verft”. Foreign workers in 26 sub-companies, who worked at Vard Søviknes, were checked. Most of them talked about too low a salary. At the time, the Spanish company Electromecánica Del Noroeste could neither present employment contracts nor pay slips. Promise to clean up The Norwegian Labor Inspectorate concluded that Vard Søviknes had breached his duty to ensure that everyone received the minimum wage. When news wrote about the breach, Vard claimed that they had cleaned it up. – We have carried out a thorough review of all our agreements. Previously, we said that one must follow Norwegian laws and regulations. Now we explain what that means, said executive vice president for HSE and quality, Magne Bakke, among other things. Magne Bakke sits on the board of the Vard group and is responsible for working conditions. Photo: Roar Strøm / news Facts about Vard The Vard Group is Norway’s largest shipyard group. Vard owns three operational shipyards in Norway. They are all located in Møre and Romsdal: Brattvåg, Langsten and Søviknes. Vard shut down the operation of shipyards at Aukra and Brevik in 2019. In addition, Vard has shipyards in Romania, Brazil and Vietnam. Vard’s largest owner is the Italian company Fincantieri. Source: Vard group Several cases of underpayment Now, more than a year after the major inspection, news has investigated whether Vard has really cleaned up. But despite strict routines, several mistakes have occurred. Nine Spanish elevator fitters from the company Electromecánica Del Noroeste were paid too little when they worked at Vard Søviknes in February and March this year. Documentation from the Norwegian Labor Inspection Authority shows that one of them received NOK 80 an hour, about half of what he was supposed to have. And this summer it went wrong again. A random sample carried out by the Norwegian Labor Inspectorate showed that the workers in the Spanish company received lower hourly wage supplements than they should have. When asked by news, Vard confirms that they have also discovered errors with several subcontractors, but will not say anything about who it applies to or the extent. – For example, we have discovered several people who have not been registered with the Tax Agency when they come to the shipyard. Although according to the law the companies have a 14-day deadline for such registration, they have not been given access to the yard until this has been arranged, in line with our procedures, writes Hege Anita Akselvoll, director of communications at Vard. – We constantly update our routines and ensure that what we check is in line with current international guidelines, writes Hege Anita Akselvoll, communications director at Vard. Photo: Roar Strøm / news – Has nothing to do with Norwegian working life The Swedish Confederation believes that it is completely unacceptable that workers are paid too low again and again. – The least we can expect from a Norwegian shipyard is that they manage to prevent the exploitation of workers within their own fence, says manager Jørn Eggum. He himself visited Vard Søviknes last autumn, during the construction of “Viking Octantis”. – Employers who underpay workers have nothing to do with Norwegian working life. Jørn Eggum is the leader of Fellesforbundet. Photo: Patrick da Silva Sæther / Patrick da Silva Sæther – took on the surrounding affair news has asked for an interview with Vard for this case. Vard does not want to ask, but answers the questions in writing. Vard informs that they immediately implemented measures after the inspection last year, and these routines have been followed ever since. – How is it possible that workers at the shipyard in 2022 will not be paid the minimum wage? – We made sure that Electromecánica Del Noroeste had an employment agreement for the assignment in Norway for all its workers which guaranteed them wages in accordance with Norwegian law. When we became aware that the workers in February and March had still not been paid in accordance with the documentation we had received, we took immediate action. We demanded that the company pay its employees in arrears immediately and before the deadline for the Norwegian Labor Inspection Authority expired, writes Akselvoll. The Norwegian Labor Inspection Authority confirms to news that the workers have received back pay. The cruise ship “Viking Octantis” was docked at the Vard Søviknes shipyard last autumn. The Vard group is the largest shipyard group in Norway. Photo: Arne Fredrik Næs / news will ensure that the workers receive the right salary It is not Vard who pays out salaries directly to the workers. Vard informs news that they paid the Spanish company a fixed price for the installation of lifts. Nevertheless, Vard is responsible for “making sure” that the subcontractors pay the workers the right wages. According to the Norwegian Labor Inspection Authority, the so-called “obligation to pay” can be fulfilled by, for example, a clause in the contracts that the workers must have minimum wage or more, and that this is followed up by obtaining documentation on the workers’ pay and working conditions. Meiner they over the “Essis obligation” after the major control has changed the procedures at all Vard yards in Norway. Even if some workers were again paid too little, Vard believes that they comply with the “bag duty” through the fact that their procedures are followed. – By demanding to see the contract the suppliers enter into with their workers, we ensure that the workers know what wages they are entitled to and what we expect them to receive. This, together with other routines, the Norwegian Labor Inspection Authority has concluded is in line with the duty to inform and the “obligation to look after” that Vard has for its subcontractors, writes Akselvoll. Some of Vard’s procedures to fulfill the requirements for the duty of EAK: Vard has the conditions in the contracts with the suppliers that in order to get the assignment, they will pay their workers according to Norwegian laws and regulations, and thus above the minimum wage. Check that all workers who come to the shipyard have a signed employment agreement for the assignment in Norway that confirms the minimum wage or more, and a confirmation that they are registered with the Tax Authority. Access to the yard is only granted during the period the workers are registered. Vard carries out risk-based supervision of pay slips and time sheets. The selection for inspection is based, among other things, on the risk areas that the shipyard report has revealed. – Mistakes can happen When news contacts Jens Erik Romslo, section head of the Norwegian Labor Inspection Authority, he says that there is reason to ask questions about whether the shipyard complies with the information and “bag duty” if someone does not receive the minimum wage. – It is unfortunate when errors are discovered, but we must recognize that it can happen and must be patient when it comes to major change processes, says Romslo. – But we have been in dialogue with Vard and they have carried out a number of changes at system level, and are in the process of making even more. – These are complex matters and it requires complicated calculations to uncover deviations. The Norwegian Labor Inspectorate and the shipyard have various instruments and tools to gather information, says Jens Erik Romslo, section manager of the Norwegian Labor Inspectorate. Photo: Dag Harald Kvammen Andersen / news The police, the Swedish Tax Agency and the Norwegian Labor Inspection Authority have collaborated on “Operation shipyard”, a two-year supervisory work at shipyards in Møre and Romsdal. The project has a preventive perspective where one of the goals is to make the shipyard better able to comply with the regulations. – We see the result of that now. The shipyard takes this very seriously and makes the necessary changes, says Romslo. Inspectors from the police, the Norwegian Labor Inspection Authority and the Norwegian Tax Agency worked together under supervision at Vard Søviknes in October last year. news has lost details in the picture. Photo: Arne Fredrik Næs / news will not comment as news has mentioned earlier, received Electromecánica del Noroeste first the highest fee Labor Inspectorate has ever provided. They were asked to pay one and a half million kroner. But after complaining, the company avoided paying the fee. news has given Electromecánica Del Noroeste the opportunity to answer questions about why they did not give the workers the wages they were entitled to. “Our client has not wished to comment on this beyond pointing to the contact between the company and the Norwegian Labor Inspection Authority”, wrote the company’s Norwegian lawyer, Thorkil H. Aschehoug, in an e-mail to news. The Spanish company has traveled from Norway. No one has received a compulsory fine After the inspections last year, the Norwegian Tax Agency gave a number of companies notice of possible fines due to lack of reporting. – The vast majority of businesses comply with the regulations and none have so far been given compulsory fines, says head of tax crime Erik Nilsen to news. Of the 15 businesses that were not registered with an organization number when the Tax Agency carried out the checks, nine have been registered afterwards. The last six unregistered have, after that, the Norwegian Tax Agency no longer have assignments in Norway. The tax authorities say they will monitor the shipyard industry, which they consider to be one of several risk industries for workplace crime.
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Shipyard promised a fine and improvement – now workers have again received too little pay
