US refinery strikes persist despite proposed deal

OREANDA-NEWS. March 17, 2015. Strikes at a dozen US facilities representing 20pc of refining capacity continued days after union workers and management tentatively agreed to a new four-year labor contract.

United Steelworkers (USW) national negotiators on 12 March endorsed a labor agreement that includes wage increases, renews healthcare premium payments and commits to discussions on worker fatigue and maintenance staffing.

But a strike that forced Tesoro to halt production in February at its 168,000 b/d Golden Eagle refinery in Martinez, California, continues as local USW employees and companies negotiate issues specific to each refinery. Companies affected by the stoppage, including BP, Marathon Petroleum and lead refining negotiator Shell, continue local-level negotiations this week.

Strikes at nine refineries have now lasted 44 days, and stoppages at Motiva facilities with 1.1mn b/d of capacity have continued for 23 days.

No refinery has been so affected as the Golden Eagle facility. Tesoro chose to convert to terminal service rather than use replacement workers to restart the facility from extensive maintenance. Work stoppages are affecting almost two-thirds of Tesoro's refining capacity. USW workers at its 68,000 b/d refinery in Mandan, North Dakota, initially also served but quickly withdrew a strike notice.

BP has reported a series of issues at its Whiting refinery this year, both before and after the work stoppage. A smaller fluid catalytic cracker (FCC) unit went down for unplanned repair during the stoppage, but the overall facility continues to operate.

Tesoro, Shell and ExxonMobil had no updates on the status of negotiations today. BP and Marathon Petroleum said talks continued at their respective refineries.