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Shell says 'optimistic' on U.S. refinery contract talks

Fri, 30th Jan 2015 04:45

HOUSTON, Jan 29 (Reuters) - Lead industry negotiator RoyalDutch Shell Plc said on Thursday it was "optimistic" anew three-year agreement could be reached with a unionrepresenting hourly workers at 63 U.S. refineries that accountfor two-thirds of U.S. refining capacity.

In a message to members, the United Steelworkers union (USW) did not share Shell's optimism, pointing to the approachingexpiration of the current three-year agreement at 12:01 a.m. onSunday in the time zone where each refinery is located.

"Still no new offer from the industry," the USW messageread. "Clock is ticking. Day of action was a huge success andOilworkers are ready to stand up and fight back."

USW locals carried out protests in support of the union'scontract proposals in front of refineries across the country onWednesday. The union and refineries have both prepared for apossible strike, which the union signaled on Monday may beneeded to win concessions from the oil companies.

The last nationwide refinery workers strike was in 1980 andlasted for three months.

Shell is leading the talks on behalf of companies that ownU.S. refineries including majors such as Exxon Mobil Corp and BP Plc and smaller companies such asHollyFrontier Corp and Delek.

"We remain optimistic that a mutually satisfactory agreementcan be negotiated with the United Steelworkers union (USW),"said Shell spokesman Ray Fisher in a statement issued onThursday night.

The USW is seeking annual pay raises double those of thelast agreement. It also wants work that has been given in thepast to non-union contractors to start going to USW members, atighter policy to prevent workplace fatigue, and reductions inmembers' out-of-pocket payments for healthcare.

The USW has rejected two contract proposals from oil companynegotiators since talks began on Jan. 21. At least five contractproposals were rejected during the talks in 2012 for the currentagreement.

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.

(Reporting by Erwin Seba; Editing by Tom Hogue)

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