Sun, Feb 26, 2012, 9:20 AM EST - U.S. Markets closed

Union says refinery workers strike more likely

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RDSA.L2,322.00-6.50

By Erwin Seba

HOUSTON (Reuters) - The United Steelworkers union warned on Saturday that a strike by U.S. refinery workers as early as 12 a.m. Wednesday was becoming more likely due to "the lack of a more substantive response from the industry."

Union and oil company negotiators have been meeting since January 17 to hammer out a new three-year agreement for workers at nearly two-thirds of U.S. refining capacity.

Union negotiators have not sent out a similar warning to refinery workers in the past three rounds of contract talks with the industry.

Shell Oil Co, which is the lead oil company negotiator, said on Saturday it would work toward an agreement.

"We continue to negotiate with the goal of reaching a mutually satisfactory agreement with USW," said Shell spokeswoman Kayla Macke.

Previously, Shell had said it was optimistic a deal could be reached.

In the statement issued Saturday night, the USW's bargaining committee said that without further progress in the talks a strike could take place at "one or more locations when the collective bargaining agreements expire."

Talks between the two sides were scheduled to continue through the weekend.

USW spokeswoman Lynne Hancock said the union would make no further statements on Saturday.

In the lead-up to this year's talks, the Steelworkers union warned that the lack of improved safety protections for workers at the nation's refineries could bring about the first nationwide strike since 1980.

Eighteen workers have died at U.S. refineries since the last agreement in 2009, according to the union.

As much as 11 percent of U.S. refining capacity could temporarily shut due to a strike lasting three months, sources have said.

In addition to possible shutdowns, oil companies have been training temporary replacement workers to continue to operate their refineries in the event of work stoppage.

One source said refiners' preparations for a possible strike are unlike any seen in 20 years.

Industry analysts have said they thought the chances of a strike were slim.

During the 1980 strike, refiners kept their plants in operation by using trained supervisors and engineers to replace hourly workers who operate and maintain equipment.

Shell Oil Co is the U.S. unit of energy giant Royal Dutch Shell Plc (RDSa.L).

(Editing by Chistopher Wilson)

 

83 comments

  • Ken, Kenny  •  Cicero, Illinois  •  28 days ago
    they average about 30 an hour...they'll get locked out
  • Pilm  •  28 days ago
    $4.00, we're nearly there now, betcha it'll be more like $5!
  • David  •  Chandler, Arizona  •  27 days ago
    Union employees are not the problem, but their leadership is suspect. I was a union employee all my working days, but found that the leadership were more interested in feathering their beds than mine.
    I support the union demanding more work place protection. However, I do not wish to spend more time waiting at the gas pump to pay inflated prices, so some corrupt scumbags in the NYMEX run to the bank with bags full of money. The workers, and maybe some of the union leadership, are being used by the traders.
    The employees at each refinery should work with management to deal with their specific safety issues, file complaints with OSHA, and, if need be, start a law suit that will wake up management.
    You don't need to be a union employee to have a strong voice with management. You need to have a corporate culture that sees the strength in listening to its employees for the greater good. Nucor Steel is a case in point where employees benefit greatly by their disassociation from the USW.
  • Ed  •  Allendale, Michigan  •  27 days ago
    usw union rips off its members. They make them pay a percentage of their pay. The more you make as a member the more they take! The USW is also in the hole about $400M dollars and is probably the one of the biggest ponzi schemes since Maddoff.
  • 6th grade superstar  •  Scranton, Pennsylvania  •  28 days ago
    Another reason for speculators to bid up gasoline prices. Here comes 4.00 gas
  • MichaelB  •  Livingston, New Jersey  •  28 days ago
    Of course the price of gas and heating oil rise higher and the company makes another record profit.
  • John  •  Phoenix, Arizona  •  28 days ago
    Unions today are in the business because of the big bucks and not for the workers health. The more members a business agent signs up the more money he makes. Don't believe? Look at what he drives and how often he gets a new vehicle.
  • tstern  •  Iowa City, Iowa  •  28 days ago
    Bust out all the unioins.. I find it funny that the worker think another greedy corporate entity (The Union) has their best interest at heart. How much does your union president and other officers scrape from the top?? Good question cause you will never find out.. LOL
  • English John R.  •  Scottsdale, Arizona  •  27 days ago
    Abject lesson "How to deal with Unions and the like" History "Margaret Thatcher had the only real result in dealing with the unions, let them go on strike, see how quickly the women-folk kick their respective better half's back-sides back to work, when there's no food on the table etc., etc! Remember what Hoffer Jnr recently said when introducing Bam-Bam "........the Sons-of#$%$...." What leader, especially of the free world would condone such de-stabalizing rhetoric, the-one-and-only: Barack Hussein Obama! Vote him out!!!!
  • Ray  •  Rolling Meadows, Illinois  •  27 days ago
    The words "Unions" & "Strike" are the examples of Lenin and his Socialist thinkings.
  • Dale  •  28 days ago
    Go ahead and strike as there are plenty of people that would love to have a job. Unions are to blame for our manufacturing losses in this country as they have gone to countries that don't have to pay inflated union wages.
  • Ancient One  •  28 days ago
    "During the 1980 strike, refiners kept their plants in operation by using trained supervisors and engineers to replace hourly workers who operate and maintain equipment." And at the end of that strike, the country was awash in refined product. The public didn't feel a thing, except for the management employees who had to figure out a way to spend all the overtime they earned on their salaries for working 12-hours shifts.
  • Mike  •  28 days ago
    Just got our school budget for next year,,cuts across the board, Our kids will miss out on all field trips, early morning extra help and all after scholl activities. We just dont have the money. Cuts down the line except for one, Can you guess?
    Teachers pay and benefits up 13 percent,, last year up 11,, year before up 9.
    Looks like the bad economy didnt hurt our teachers at all...thats the unions for you..
  • Kaos  •  Plainfield, Connecticut  •  28 days ago
    Relax the porkulous bill will save us through green energy :Earlier this week, Stimulus beneficiary Evergreen Energy bit the dust. Then, Ener1, a manufacturer of batteries for electric vehicles and recipient of Stimulus largesse, filed for bankruptcy. And today, the Las Vegas Sun reports that Amonix, Inc., a manufacturer of solar panels that received $5.9 million from the Porkulus, will cut two-thirds of its workforce, about 200 employees, only seven months after opening a factory in Nevada.
  • t  •  27 days ago
    Do any Foxbots ever read the article or look up any stats? The issue is safety according to the report. And the U.S.A is a net exporter of Refined products, say like gasoline and diesel. It is so easy for the right to vilify Unions, representing workers, rather than the refiners shutting production to keep prices high. And do not tell me they would never do that.
  • Clootie McFlatus  •  27 days ago
    Good luck lads. Your industry is fading and being choked by regulation. 7 refineries on the block and no buyers; refineries in the northeast may soon be but a memory. Giant Hess refinery in St. Croix closing. Expect the import of gasoline soon, in addition to crude oil. Don't ask for too much lads or you'll only hasten the decline...
  • Chief_blamestormer  •  27 days ago
    Route the Keystone XL over to British Columbia so the oil gets refined in China, then the gasoline can be sent back to the US, avoiding US refineries and their striking workers.
  • chris  •  Fort Worth, Texas  •  27 days ago
    Bust all unions they are run by socialist corrupt union bosses who steal the dues of members
  • goose down  •  Sunnyvale, California  •  27 days ago
    smells fishy
  • Mr. B  •  27 days ago
    Does not matter what you think! They already know you are a coward and all you do is raise hot air and soon accept it. Please just pipe down and do what you do best!
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