Posted on 02/03/2015 5:20:22 AM PST by thackney
In fact, the USW enjoys the right to pick which company will head up negotiations and specifically chose Shell this year for its perceived flexibility. Shell forged deals with the union in 2006, 2009 and 2012.
Those contracts were considered successes, especially after a months-long walkout in 1980, a time people still talk about as a low point for disputes in the sector.
This year, however, was different. John Abbott took over as Shell's refining chief in 2013 and Ben van Beurden became chief executive officer in 2014.
This time, there were new faces on the negotiating team from Shell, and a 50 percent slide in oil prices CLc1 LCOc1 since June cast a shadow over the talks as companies slashed spending.
After days of friction, Shell cut off talks on Sunday, a move that stunned the union.
"We were very, very shocked," USW International President Leo Gerard told Reuters on Monday. "Shell has been a responsible lead company in years past. We have been able to have rational, reasonable negotiations with them."
Feeling they had no other option, the union called a strike at nine plants with a combined 10 percent of U.S. refining capacity.
Mystified by Shell's change in tone from previous contract talks, some striking workers on Monday said they think that oil companies, seeing that many older refinery workers are retiring, are trying to test the strength of younger union members....
The union is seeking annual pay raises of 6 percent, double the size of those in the last agreement. It also wants work that has been given in the past to non-union contractors to start going to USW members, a tighter policy to prevent workplace fatigue, and reductions in members' out-of-pocket payments for healthcare.
(Excerpt) Read more at reuters.com ...
...Union leaders haven’t called a strike nationally since 1980, when a stoppage lasted three months. While only one of the nine plants has curbed production amid the stoppage, a full walkout of USW workers would threaten to disrupt as much as 64 percent of U.S. fuel output....
United Steelworkers members do everything from operating units to performing maintenance to testing and analyzing samples in labs at U.S. refineries, Hancock said.
The refineries on strike can produce 1.82 million barrels of fuel a day, data compiled by Bloomberg show. They span the U.S., from Tesoro’s plants in Martinez and Carson, California; and Anacortes, Washington, to Marathon Petroleum Corp.’s Catlettsburg complex in Kentucky to three sites in Texas, according to the USW’s statement.
In Texas, Shell’s Deer Park complex, Marathon’s Galveston Bay plant and LyondellBasell Industries NV’s Houston facility are affected, according to the union. LyondellBasell activated its work-continuation plan, according to spokesman George Smalley on Sunday....
Tesoro is shutting process units at Martinez, Tina Barbee, a spokeswoman at the company’s headquarters in San Antonio, said by e-mail on Monday. The facility already had about half its processing capacity offline for maintenance. The company has “successfully transitioned and are operating” the Anacortes and Carson refineries, Barbee said.
More refineries are standing by to join the sites on strike, according to two people familiar with the plan who asked not to be identified because the information isn’t public....
Here in L.A., it’s $3.69 per, compared to the rest of the stations ARCO etc, where is $2.39 average.
What is the cal excise tax on gasoline....I believe it is quite high??
Gee, 6% guaranteed wage hike per years....seems fair to me as I note my wife’s and I combined income last year went up .5% including her promotion.
A 6% annual increase contract during a period of global deflation isn’t happening. Looks like there is going to be a very long strike if that’s their demand.
California Gasoline
36.00 State Excise Tax
9.39 Other State Taxes/Fees
45.39 Total State Taxes/Fees
63.79 Total State plus Federal Excise Taxes (@ 18.4 cpg)
“Other Taxes” decreased from 12.47 to 9.39 cpg for gasoline and from 38.8 to 29.6 cpg in Q12015. Calculation does not include taxes or fees associated with California AB 32. The applicable sales and use tax declined from 9.44% to 9.25% in addition to certain district taxes. The sales tax on gasoline is 2.25% plus applicable district taxes. Sales tax rates applied are a weighted average based on county population. Other fees include the Underground Storage Tank (UST) fee which decreased from 2.0 cpg to 1.4 cpg on 1/1/14.
http://www.api.org/~/media/files/statistics/statemotorfuel-onepagers-jan-2015.pdf
Revised 1/16/2015
I agree, a 6% permanent raise in a market slammed by volatility and uncertainty makes perfect sense to me. No wonder the union guys were shocked.
After all, I just can't remember a more stable, self perpetuating industry like oil and gas, where demand always goes up and never has sudden crises.
Well, maybe the federal government ...
I'm going to ask my boss for this today...
Fire all striking workers. I am sure there are plenty of oil rig workers in Texas and the Dakotas who would gladly take those jobs. At least until oil prices rose again.
Twinkies are back without the union....
It’s about time these chickenSXXt companies developed a spine!!!
There are ALOT of folks out there right now VERY willing to take these jobs not a smart move on the unions part!!!!!! These jobs are in VERY high demand right now and prices on oil are dropping rapidly!!!!
DITTO!!!!!!!
Of course the same things can be said about a plethora of other industries
also. Loyalty is a two-way street.
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