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U.S. refinery deal hits roadblocks at 8 striking plants

Mon, 16th Mar 2015 16:00

By Erwin Seba

HOUSTON, March 16 (Reuters) - A tentative national agreementto end a six-week strike at twelve U.S. refineries has struggledto win ratification at eight plants as workers and companiesstruggle to settle local issues, according to union officials.

The deal reached on Thursday by the United Steelworkers(USW) and lead industry negotiator Royal Dutch Shell Plc to end the biggest walkout of its kind in 35 years is showing signs of quick passage at just four plants.

The four sites where the deal is finding support andprogress is being made on local issues are at facilities ownedor co-owned by Shell.

Workers at these plants, which include three MotivaEnterprises refineries, have scheduled or areexpected to hold votes this week to ratify the agreement. Theycould be back at work next week.

But local labor talks were stalled at other plants as unionchapters try to address issues not covered by the national dealthat defines rules for pay, healthcare and safety.

The delays mean companies will have to continue relying ontemporary workers to keep their plants running. The stoppagesaffected plants with a fifth of U.S. crude processing capacity.

"(The)fight continues at Tesoro, Lyondell, BP, Marathon andothers still face challenges with local issues," the USW saidSunday.

Lyondell Basell Industries broke off negotiationson Saturday with the USW chapter from its Houston refinery, theunion said.

The company halted talks claiming 'the Union needed acooling off period,'" USW local 13-227 said in a letter to itsmembers.

It said the company negotiators provided no furtherexplanation. Lyondell spokesman George Smalley said the companywould not comment for now.

A source familiar with the talks said the company may bewaiting to see if more workers cross the picket line at theplant. About 10 percent of the more than 400 workers representedby USW local 13-227 have returned to work there.

On Friday, the USW said a strike at the Marathon PetroleumCorp's Galveston Bay Refinery in Texas City, Texas,would continue at least until the company agrees to accept thenational settlement reached last week.

A Marathon spokesman said the company would be meeting withthe union but would have no further comment.

Other strikes are at three Tesoro Corp West Coastrefineries, BP Plc's Whiting, Indiana refinery and BP'sjoint-venture refinery in Toledo, Ohio with Husky Energy. (Editing by Terry Wade and W Simon)

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