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HOUSTON, Jan 30 (Reuters) - Union negotiators said thelatest proposal from oil companies for a new three-year contractfor U.S. refinery workers was rejected on Friday because itfailed meet to members' objectives, according to a text messageissued Friday night.
The announcement of the rejection by the United Steelworkers(USW) on Friday came 28 hours before the current contractcovering hourly workers at 63 refineries accounting fortwo-thirds of U.S. refinery capacity is set to expire.
"Industry's latest offer fails to address issues that matterto USW members," said the text message to union members, whichwas also sent to the media. "All units instructed to reject."
The current three-year agreement expires at 12:01 a.m. onSunday in the time zone where each refinery is located.
This is third offer from lead industry negotiator RoyalDutch Shell Plc that USW negotiators have rejectedsince talks began on Jan. 21.
A Shell spokesman said the talks would continue.
"Shell is continuing negotiations with USW with the intentof reaching a mutually satisfactory agreement prior to contractexpiration," said Shell spokesman Ray Fisher.
Shell's statement on Friday was different from the same onethe company has issued in the previous nine days of talks. UntilFriday, Shell has said it was "optimistic" a mutuallysatisfactory agreement could be reached with the USW.
The USW is seeking annual pay raises double those of thelast agreement negotiated in 2012. It also wants work that hasbeen given in the past to non-union contractors to start goingto USW members along with a tighter policy to prevent workplacefatigue and reductions in members' out-of-pocket payments forhealthcare.
The last national refinery workers strike was in 1980 andlasted for three months.
Repeated rejections of contract proposals are not unusual innegotiations between the USW and Shell for a national refineryworkers agreement.
At least five contract proposals were rejected during thetalks in 2012 for the current agreement.
Previous negotiations between the USW and oil companies havegone down to the wire.
In 2012, an agreement was announced only hours before thecontract was set to expire. During bargaining in 2009, thedeadline for the contract's end was extended three times beforean agreement was announced.
The union and refineries have both prepared for a possiblestrike, which the union signaled on Monday may be needed to winconcessions from the oil companies.
(Reporting by Erwin Seba; Editing by Diane Craft)
