News / Economy

Union tells members to strike at nine major US refineries

Sunday, 01 February 2015 9:10 AM [ Last Update: Sunday, 01 February 2015 9:29 AM ]

A tanker truck passes the Chevron oil refinery in Richmond, California. (File photo)

Union leaders called on refinery workers Sunday to strike at nine major US fuel-making plants in a bid to pressure oil companies to agree to a new national labor contract.

Negotiators from US refineries and the United Steelworkers Union (USW) failed to reach a deal on pay, health care and safety concerns by a 12:01 a.m. Sunday deadline.

The union sent out a text message to its members saying the latest offer from oil companies was "insulting and fails to address issues that matter to members." It did not specify what the offer was.

The latest discord comes against a backdrop of plunging crude prices, which has forced oil companies to slash spending.

"The drop in oil prices has benefited the refining side of the oil majors’ operations and also the independent refiners as well," said USW spokeswoman Lynne Hancock. "Even though the refiners’ margins may not be as high as they were before the oil price decrease, the refiners are still making money."

On Saturday, the United Steelworkers Union rejected the fourth offer from Royal Dutch Shell, which led negotiations on behalf of US refinery operators.

The union and oil companies have been negotiating since Jan. 21 to reach an agreement on a new three-year national contract.

"We remain committed to resolving our differences with USW at the negotiating table and hope to resume negotiations as early as possible," Shell said in a statement.

The expiring labor accord covers about 30,000 workers at plants that together account for two-thirds of US refining capacity.

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