(Adds talks to continue Wednesday, further detail)
HOUSTON, Jan 27 (Reuters) - The United Steelworkers onTuesday rejected the second proposal for a new U.S. refineryworkers contract made by oil company representatives, saying itfailed to adequately address key concerns such as pay andhealthcare, according to a text message sent to union members.
"Industry's second proposal falls far short - inadequate andfails to address any key concerns of membership," the messageread. "All units have been instructed to reject. Stay strong!"
The Steelworkers are seeking annual pay raises double thoseof the last agreement. The union also wants work given tonon-union contractors to go to USW members, a tighter policy toprevent workplace fatigue, and reductions in members'out-of-pocket payments for healthcare. [FACTBOX ID:nL1N0V62LX]
Negotiations between the USW and refiners are scheduled tocontinue on Wednesday, said union spokeswoman Lynne Hancock.During negotiations in 2012, at least five contract proposalswere rejected before an agreement was reached just hours beforethe contract was set to expire.
The last nationwide refinery workers strike was in 1980 andlasted for three months.
Union and oil company negotiators met for a seventh day ofnegotiations on Tuesday ahead of the current contract expirationat 12:01 a.m. on Sunday in the time zone where each refinery islocated.
Royal Dutch Shell Plc is leading the talks onbehalf of companies including supermajors such as Exxon MobilCorp and BP Plc and smaller companies such asHollyFrontier Corp and Delek.
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.
The USW represents workers at 63 refineries that accountfor two-thirds of U.S. refining capacity.
(Reporting by Erwin Seba; editing by Gunna Dickson)
