summary
Four-year contract includes 15% raise, $2,500 signing bonus USW seeks 16% raise, Marathon makes final offer Contract replaces current contract extended before expiration on February 1 Union tells BP Indiana refinery workers to prepare for strike and lockout
(Reuters) – The United Steelworkers of the United States adopted a national agreement on wages and benefits on Friday, averting a nationwide strike that could have affected 30,000 workers at 26 companies operating crude oil refineries and petrochemical plants.
The agreement was negotiated between the union and major US refiner Marathon Petroleum on behalf of refiners and chemical producers.
“We are pleased that Marathon and USW have successfully negotiated a pattern agreement for a new collective bargaining agreement in the U.S. refining industry,” said Marathon spokesperson Jamal Keiley. “We look forward to local sites moving forward with the ratification process.”
The four-year agreement will increase wages for hourly workers by 15%. Employees representing USW will also receive a $2,500 signing bonus. USW members are employed at refineries that account for approximately two-thirds of the nation’s domestic production capacity.
The agreement, which includes 4% raises in the first and fourth years and 3.5% in the second and third years, was proposed on February 1. Previous proposals had been rejected since negotiations began in late January.
The union said the agreement was approved by the USW National Petroleum Bargaining Program (NOBP) Policy Committee, which represents oil workers across the United States.
Advertisement · Scroll to continue
USW NOBP President Mike Smith praised union members for their work on the agreement.
“USW members across the country, employers and industries came together to demand a fair contract,” Smith said in a union statement. “Their unity and unity made this agreement possible.”
Although a nationwide strike has been averted, work could still be halted at individual refineries and chemical plants due to disagreements over local issues.
On Thursday, USW Local 7-1 in Whiting, Indiana, told its members employed by BP at the Whiting Refinery to prepare for a strike or lockout.
BP said Friday it is not bound by the terms of the national agreement approved by the USW.
“Regardless of what is agreed at the national level between Marathon and the international USW, the Whiting Refinery is in no way obligated to follow a ‘pattern’,” a BP spokesperson said. “We will continue to negotiate in the best interests of our employees, our company and our communities.”
USW 7-1 President Eric Schultz said BP’s announcement was unprecedented.
“We have spent most of the negotiations discussing BP’s proposed concessions that would eliminate local jobs, cut wages across the board, and take away bargaining rights,” Schultz said. “We will continue to negotiate in good faith,” he said.
Union officials met with local unions this week to gauge their willingness to accept what has become Marathon’s last, best and last offer, according to people familiar with the negotiations. USW had expected a 16% overall increase this week, but Marathon stuck with its final proposal, sources said.
Union leaders had to contend with the expectations of rank-and-file members, who expected USW to achieve a 25% increase over the new contract term, adjusting cost of living if inflation outpaced annual wage increases.
The average hourly wage for an inside refinery operator is about $50.
The new contract will begin replacing the current contract once adopted by each factory. The current agreement was extended on a rolling 24-hour basis, hours before it was due to expire at 12:01 a.m. on February 1st.
Share this:
