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UPDATE 3-Shell weighs 'jab or job' policy for employees -document

Thu, 09th Sep 2021 14:50

* Shell considers mandate for offshore operations

* Some U.S. operations already have 'soft enforcement'

* Trading floors exploring vaccination mandate
(Adds comment from U.S. offshore producer QuarterNorth,
background on other oil companies' policies)

By Ron Bousso and Sabrina Valle

LONDON, Sept 9 (Reuters) - Royal Dutch Shell is
considering making it mandatory for workers in some operations
to get COVID-19 vaccinations or risk being fired, an internal
company document seen by Reuters shows.

The energy company, which employs some 86,000 workers in
more than 70 countries, will weigh the pros and cons of the
policy at an executive committee meeting on Friday, said two
sources who declined to be identified.

Shell declined to comment.

Companies around the world are grappling with their response
to COVID vaccinations as some countries struggle to inoculate
their population or in some cases people refuse to get the
vaccine.

The second-largest U.S. oil producer, Chevron Corp,
and refiner Valero Energy Corp are requiring
vaccinations https://www.reuters.com/business/energy/chevron-begins-covid-19-vaccination-mandates-wsj-2021-08-23
for certain field workers or new workers, while leading Permian
producer Pioneer Natural Resources is requiring newly
hired employees to be fully vaccinated before their first day of
work.

The internal Shell memo, dated Sept. 1, recommends that the
company should overall "stay the course with our current policy
of strong advocacy for vaccination, but no compulsion," adding
however that it should consider introducing a vaccine mandate
for specific operations.

That would include employees on offshore rigs where
self-isolation and evacuation are complex and highly disruptive,
the document said.

Those who refuse could face dismissal.

"For staff who refuse to comply with a vaccine mandate we
would make all reasonable efforts to avoid terminating their
employment but will be faced with no alternative but to do so,"
the document said.

Shell's trading division has already requested a vaccine
mandate "because social distancing is impossible to achieve on a
trading floor."

The company is also already actively exploring the
introduction of the policy for offshore workers in the Gulf of
Mexico, the document said.

Shell has already adopted a "soft enforcement" vaccination
policy in the Gulf of Mexico and in the onshore Permian shale
basin operations under which employees and contractors must
produce a negative COVID-19 test or proof of vaccination to
access Shell sites, the document said.

Shell rival BP Plc said in a statement that for now
it doesn't have any specific vaccination mandates in place,
other than where required under any national or local rules.

The internal Shell document was first reported by the
Financial Times on Wednesday.

Exxon Mobil Corp, which has no mandates in place,
said on Thursday it strongly encouraged COVID-19 shots and
expected non-vaccinated staff members to wear masks indoors when
six feet of social distancing is not possible.

The company is deferring to those vaccinated to use their
best judgment and consider wearing masks when in crowded areas
for extended periods of time.

"We will continue to monitor guidance from health
organizations and the effectiveness of our mitigation efforts,
and make adjustments if and when they are needed," Exxon's
spokesperson Casey Norton said.

Smaller Gulf of Mexico producers, including QuarterNorth
Energy Holding Inc, have not yet introduced vaccine mandates.

“QuarterNorth does not have a mandated vaccine policy at
this time. We have very thorough screening and testing protocols
in place and regularly monitor developments in order to assess
appropriate changes to our policies,” said company Chief
Executive Mike Dane.

(Reporting by Ron Bousso; additional reporting by Sabrina Valle
and Jessica Resnick-Ault; editing by Elaine Hardcastle,
Bernadette Baum and Jonathan Oatis)

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