Tentative deal may end US refining strike: Union

OREANDA-NEWS. March 13, 2015. Union refinery employees have a tentative agreement on a contract dispute that triggered a 40-day work stoppage, lead one west coast facility to stop production and affected 20pc of US refining capacity.

A tentative agreement that includes wage increases, changes to health expenses and a joint review of refinery staffing will go to local review but received the approval of lead negotiators.

A representative for Shell, lead negotiator for the industry, could not be immediately reached for comment.

If approved, individual refineries will still need to resolve any outstanding local issues with United Steelworker (USW) employees. But settlement of national-level talks with the USW will allow resumption of normal operations from strike conditions primarily affecting US West coast and midcontinent facilities.

USW national negotiators sought higher wages, better health benefits and for refiners to use fewer contract workers, which the union said threatens plant safety. Lead negotiators for the union rejected seven contract offers.

Refiners turned to supervisors, retirees and other non-union labor to continue operations. Tesoro in the first week of the strike shut its 168,000 b/d Golden Eagle refinery in Martinez, California, which was operating at reduced rates for maintenance at the time. The company was evaluating restart plans earlier this month both including and working around the striking employees.

Workers on 1 February gave strike notifications at the 268,000 b/d LyondellBasell refinery in Houston, Texas; Marathon Petroleum's 475,000 b/d refinery in Texas City and 240,000 b/d refinery in Catlettsburg; Shell's 340,000 b/d joint venture refinery and associated chemical plant in Deer Park, Texas; and at Tesoro's 120,000 b/d Anacortes, Washington, 260,000 b/d Carson, California, and Golden Eagle refineries.

USW employees at BP's 410,000 b/d Whiting, Indiana, and 157,000 b/d joint venture Toledo, Ohio, refineries joined the strike on 8 February. Employees at Motiva's 600,000 b/d refinery in Port Arthur, Texas, and 225,000 b/d refineries in Convent and Norco, Louisiana, joined the stoppage in late February.

Employees of a Marathon Petroleum cogeneration plant also joined the strike.

USW workers continued under rolling 24-hour contract extensions at Phillips 66 and Valero refineries, as well as at Tesoro's 68,000 b/d refinery in Mandan, North Dakota, and at ExxonMobil's 348,000 b/d refinery in Beaumont, Texas.

Delta Air Lines subsidiary Monroe Energy and USW employees at its 185,000 b/d refinery in Trainer, Pennsylvania, reached a tentative agreement on contracts that expired 28 February. A federal mediator had been invited to join negotiations ahead of the agreement.

The union has warned more refineries could join as contracts expire without a replacement, but has declined to identify at which other refineries workers will have expiring contracts this year.

Refiners, meanwhile, have worked to bring employees back in from the strike lines. LyondellBasell filed a complaint with the National Labor Relations Board in late February alleging the union was intimidating workers who wished to return to work. ExxonMobil urged Beaumont workers to move off of the national pattern, and Shell warned it could begin hiring replacement workers this summer.

The USW represents workers at 65 refineries operating roughly 64pc of US capacity, according to the union. Strikes are affecting almost 20 of US refining capacity.