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Share Price: 500.50
Bid: 499.75
Ask: 499.90
Change: -3.20 (-0.64%)
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Open: 498.00
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Low: 490.65
Prev. Close: 503.70
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UPDATE 2-U.S. refinery strike passes 18th day but talks resume

Thu, 19th Feb 2015 03:31

(Updates with Shell, USW messages/)

By Erwin Seba

HOUSTON, Feb 18 (Reuters) - The largest U.S refinery workersstrike since 1980 passed its 18th day on Wednesday but talksbetween union and oil company representatives over safety andpay restarted after a gap of a week and went into the night,according to a union text message.

More than 5,000 workers at 11 plants, including ninerefineries accounting for 13 percent of U.S. productioncapacity, remained on strike on Wednesday.

"Industry responded to the information request and engagedin discussions into the evening," the text message to UnitedSteelworkers union (USW) members read. "Still miles apart.Bargaining continues tomorrow."

Talks between the USW and lead oil company negotiator RoyalDutch Shell Plc had been on hold as the company drew upa response to an information request and a counterproposal fromthe union.

"Shell resumed negotiations with the USW on Wednesday andcontinues to work towards reaching a mutually satisfactoryagreement," spokesman Ray Fisher said.

On Monday, the union's lead negotiator, International VicePresident Gary Beevers, told Reuters that safe staffing levelsat refineries and chemical plants remained a sticking point. Theunion also wants wage increases.

The USW has issued no new strike notices since Feb. 6, whenworkers at plants in Whiting, Indiana, and Toledo, Ohio, weretold to walk off their jobs the next day.

On Wednesday, the USW sent a text message to members afteran explosion at Exxon Mobil Corp's 149,500 barrel perday Los Angeles-area refinery in Torrance, California.

The union said the blast, which injured four contractworkers, showed the urgency of its goal to negotiate saferworking conditions.

"As USW pushes life-saving safety improvements, explosionrocks Exxon Torrance," the message read. "Some injuries, nofatalities. Safe refineries save lives."

Exxon said four workers at the Torrance refinery were takento hospital with injuries.

Lyondell Basell sent letters on Wednesday invitingmore than 400 striking workers at its 263,776 bpd Houstonrefinery to cross picket lines and return to work under terms ofthe previous contract.

A USW spokeswoman said the company should focus on workingwith the union to improve safety.

"Our workers at that location are in solidarity with whatwe're trying to achieve through the national pattern talks,which is health and safety," said USW spokeswoman Lynne Hancock.

Tesoro Corp's 166,000-bpd plant in Martinez,California, was the only refinery to cease operations due to thestrike. Part of it was already shut for maintenance and afterthe walkout started the rest was idled.

Tesoro officials have said production will not resume forthe duration of the strike.

Shell has rescheduled from March until September a plannedoverhaul of a hydrocracking unit at its 327,000 barrels per day(bpd) joint-venture refinery in Deer Park, Texas, sources toldReuters on Monday.

The USW is seeking a three-year, industrywide pact thatwould cover 30,000 workers at 63 U.S. refineries that togetheraccount for two-thirds of domestic capacity.

Companies have called on temporary replacement workers tokeep plants running at nearly normal levels. (Editing by Terry Wade, Alden Bentley, David Gregorio and AlanRaybould)

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