Refinery Workers Prepare for Strike as Labor Agreement Expiration Nears

Strategic Insights -

As the clock ticks closer to a midnight expiration of the current labor agreement, 24,000 refinery workers from the Gulf of Mexico to Montana are prepared to head to the picket lines, despite a third contract offer from Valero Energy Corp. being rejected. The nation's biggest refiner has warned that it will shut down some facilities if workers strike, with European oil company BP PLC and Shell Oil Co. making similar threats. The strike would not only affect refineries but also chemical refiners, with LyondellBasell Industries bringing in managers from non-involved locations to keep operations going.

Key Takeaways:

  • 24,000 refinery workers from the Gulf of Mexico to Montana are prepared to go on strike due to the expiration of the current labor agreement.
  • Valero Energy Corp., the nation's biggest refiner, has threatened to shut down some facilities if workers strike.
  • European oil company BP PLC and Shell Oil Co. have also warned that they would shut down operations if workers strike.
  • The strike would affect 60 producers, according to Lynne Baker, a spokeswoman for the United Steelworkers.
  • Chemical refiners would also be impacted by the strike, with LyondellBasell Industries bringing in managers from non-involved locations to keep operations going.
  • The United Steelworkers, which represents over 30,000 oil workers nationwide, has been negotiating with refiners over a new contract.
  • Bobby Hollis, chairman of the negotiating committee for the Steelworkers at Valero, has expressed doubts about reaching an agreement by the midnight deadline.
  • Union negotiators turned down the most recent offer of a 2.5 percent wage increase for each of the next three years, with changes in medical coverage.

Statistics:

  • 24,000: The number of refinery workers prepared to go on strike.
  • 2.5 percent: The wage increase offered to workers for each of the next three years.
  • 60: The number of producers that would be affected by the strike, according to Lynne Baker.
  • 30,000: The number of oil workers represented by the United Steelworkers nationwide.

Sources:

  • The Associated Press
  • Valero Energy Corp.
  • BP PLC
  • Shell Oil Co.
  • LyondellBasell Industries
  • United Steelworkers (Lynne Baker, spokeswoman)
  • LyondellBasell Industries (managers to be brought in from non-involved locations)
  • Bobby Hollis, chairman of the negotiating committee for the Steelworkers at Valero