9 February, 2009
The United Steelworkers (USW) reached tentative wage and benefit terms across the US oil and petrochemical industries last week for 24,000 workers, effectively setting a three-year pattern for refineries, pipelines, transportation, and other downstream services. But the union emerged from talks deeply disappointed that the industry did not take seriously the need for more stringent safety procedures.
USW President Leo Gerard said: “Our main focus in this round of National Oil Bargaining was health and safety, but the industry refused to allow us to be equal partners with them in resolving the health and safety problems that persistently are not being addressed across the whole industry. The oil companies were not willing to work with us to improve process safety.”
USW President, Leo Gerard
The tentative contract now will be offered at branch union tables across the US, with the USW pledging it will not give up on improving health and safety. “Let it be clear,” said USW Vice President and head of Oil Bargaining Gary Beevers, “we are not finished with our struggles for meaningful change in the health and safety arena.”
The tentative contract was reached with lead company Royal Dutch Shell and its joint-venture operations in Austin, Texas, on 3 February, two days after expirations of 70 local collective agreements. The USW and the oil industry agreed to rolling, 24-hour contract extensions on 31 January to avert mass strikes. The tentative accord means there will not be any major petroleum walkouts for the next three years, although disputes can now arise on local levels.
Besides the 24,000 US oil workers with collective agreements expiring 1 February, another 6,000 USW members have contracts expiring in the coming months, and last week’s accord sets the pattern for them as well.
USW Vice President and head of Oil Bargaining,
Gary Beevers
In a statement, the USW said, “Rather than launch a national strike over health and safety that would have hurt the American people at a time of economic crisis, the USW withdrew its health and safety proposal and focused on the economic package.”
That economic package contains 3% salary increases on 1 February in 2009, 2010, and 2011. It also includes a US$1,000 ratification bonus and a US$500-per-year payment to each worker to offset out-of-pocket health care costs. The USW succeeded in granting no retrogression of past contract terms, including company-paid health care at an 80% level. As well, the USW retained job security and successorship principles, the latter meaning collective agreements are assured and maintained in the event of a sale or takeover.
The pattern agreement now goes to some 86 oil and petrochemical worksites operated by such companies as Shell and its operating partners, ExxonMobil, ChevronTexaco, ConocoPhillips, BP, PDVSA, Valero, Tosco, Tesoro, Sun, Sunoco, LyondellBasell, Marathon, INEOS, Holly, and several other companies.