Marathon, unions close to final refinery deal

OREANDA-NEWS. April 03, 2015. Striking union workers took a step toward ratifying labor agreements at two Marathon Petroleum refineries this week, while talks continued at BP and LyondellBasell facilities.

Marathon Petroleum reached tentative agreements with United Steelworkers (USW) employees at the company's 240,000 b/d Catlettsburg, Kentucky, and 475,000 b/d Texas City, Texas, refineries, according to the company. Local employees at both sites must still ratify the agreements in votes that could come early next week. The refiner also reached an agreement with workers at its 78,000 b/d refinery in Canton, Ohio.

Ratification of the agreements at Marathon would leave just BP and LyondellBasell refineries affected by the largest US strike to hit the industry in decades. Refiners and USW reached a national-level agreement on 12 March to guide local settlements of work stoppages that began 1 February, spreading to 12 refineries representing 20pc of US refining capacity.

Shell and Motiva refineries quickly ratified the agreement last month, followed by Tesoro, the only US refiner to cut rates in response to the strike. Workers back on the job at the company's 168,000 b/d Golden Eagle refinery in Martinez, California, should restore normal operations at the refinery by mid-month.

BP and LyondellBasell have struggled to reach local-level agreements. BP reported making an offer to workers at its joint venture 157,000 b/d refinery in Toledo, Ohio. Talks moved more slowly at the 410,000 b/d refinery in Whiting, Indiana, BP's largest North American facility.

"Some unsettled issues remain and will require continued good-faith bargaining to resolve," the company said in a statement.

Union representatives and LyondellBasell negotiators remained far apart on an overtime pay issue, the company said yesterday. The company has pressed to modify its overtime payment policy.

"We are disappointed in the local committee's unwillingness to engage in meaningful negotiations," the company said in a letter to employees posted yesterday.