LyondellBasell reaches deal with strikers

OREANDA-NEWS. LyondellBasell has reached an agreement with striking union workers at its 268,000 b/d refinery in Houston, Texas, drawing the final stages of the industry's longest strike in decades nearer to a close.

United SteelWorkers (USW) members at the refinery ratified a final contract earlier this week and began coordinating a return to work, according to the company.

Resolution at LyondellBasell ends one of the more acrimonious segments of the strike, which still affects facilities with more than 1mn b/d of refining capacity. LyondellBasell and the USW traded allegations of bad faith bargaining and threats during the dispute as the Houston refinery continued to operate. The company said in an open letter to employees this week it would not address those statements "to avoid creating unnecessary tension."

The strike started 1 February and eventually grew to include union workers at 12 refineries representing more than 3.8mn b/d of refining capacity, or 20pc of total US capacity. Refiners continued to operate with back-up workers such as supervisors, except at Tesoro's 168,000 b/d Golden Eagle refinery in Martinez, California, which operated as a terminal for much of the quarter. The majority of workers reached new contracts in March, when the USW and refining negotiator Shell reached a national-level agreement.

Strikes persist at three refineries operated by BP and Marathon Petroleum. BP continues talks at its 157,000 b/d joint venture refinery in Toledo, Ohio, and has reached an agreement in principle with workers at its 410,000 b/d refinery in Whiting, Indiana. A company representative could not be immediately reached for comment.

Talks continue at Marathon Petroleum's 475,000 b/d refinery in Texas City, Texas. Chief executive Gary Heminger said last week the company hoped for a resolution "in the near term." A company representative said there was no update to discussions this week.