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Message: US Refinery Workers Poised To Strike

US Refinery Workers Poised To Strike

posted on Jan 30, 2009 02:09PM

Does anyone know whether the proposed strike by US Refinery workers will effect the Montana Refining Corporation in Grand Falls Montana, which Connacher owns, if this strike happens?

What are the unions thinking? There is currently a glut of gasoline in the US and there is an oversupply of oil. In addition, workers are losing their jobs daily during this perfect economic storm. Are these unions INSANE? If a number of refineries shut down for a period of time this will reduce the glut of gasoline and gas prices will rise. Some companies such as Exon and Shell have announced in the attached article that they will keep their refineries open by hiring replacement workers. Why would the unions strike today and put their members jobs at risk. I know that Exon announced that they made a $45.2 billion dollar profit for 2008 but do the unions really think that they will garner any public support with the US economy in the disastrous shape that it is in at present? Just yesterday President Obama denounced the Wall Street managers who granted themselves $18 billion dollars in bonus' who he singled out for their monumental greed. The world is becoming INSANE............



US Refinery Workers Poised To Strike

Reuters Friday, January 30, 2009

HOUSTON — Some 30,000 U.S. refinery workers were preparing Friday to launch a strike that could affect about half the U.S.'s oil refining capacity and boost pump prices.

Nearly 10 per cent of U.S. refining capacity could be shut down within days if union officials fail to reach a deal before an existing contract expires just after midnight Sunday morning.

“We are having difficult times in negotiations, and the talks are progressing slowly,” United Steelworkers union spokeswoman Lynne Baker said. The union rejected a third proposal from lead refiner negotiator Shell Oil Co. Thursday evening, Ms. Baker said.

Top U.S. refiner Valero Energy Corp. joined BP PLC Friday with a pledge to shut some of its refineries if there is a strike.

But other big refiners like Shell and Exxon Mobil Corp. say they plan to use replacement workers to keep their facilities churning out gasoline and other refined products should union workers strike.

The United Steelworkers union and Shell met late into Thursday night in Austin, Tex., to hammer out a new deal, Ms. Baker said.

A Shell representative declined to discuss contract talks.

Strike fears lifted gasoline prices more than 2 cents per gallon on the New York Mercantile Exchange for a second day, said analyst Peter Beutel, president of Cameron Hanover.

“A strike's going to have an impact on supply and prices,” Mr. Beutel said. “How big an impact depends on how many refineries decide they won't keep going.”

The last nationwide strike by refinery workers was in 1980 and lasted about three months.

Rumours continue to swirl through markets that other refiners will shut plants during a labour dispute as the worsening U.S. recession crushes demand for motor fuels and fuel inventories swell.

Still to be resolved at the negotiating table are issues of worker safety following the deadly 2005 BP Texas City refinery explosion, health care for workers and retirees and wage increases.

USW vice-president Gary Beevers, the union's lead negotiator, said Thursday failure to resolve the safety and health care issue could derail an agreement.

At refineries, chemical plants and pipeline facilities around the United States, workers were awaiting word from Mr. Beevers on whether to walk off their jobs when the Sunday deadline comes.

Meanwhile, management was preparing replacement workers to step into jobs operating refinery units while they remain in production.

At plants like those BP and Valero plan to shut, the union workers will stay on the job until units are safely put on standby or turned off.

According to the USW, 24,000 workers at refineries, chemical plants and pipelines across the country could walk off their jobs early Sunday if a strike is called. The other 6,000 workers have contracts with expirations later than Feb. 1.

If a strike continues until their contracts end they could also walk off their jobs on those dates.

© The Globe and Mail

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