"The USW has received an offer and will respond after
consideration of the offer tomorrow," USW spokeswoman Lynne Hancock
said. "I don't know what time they will consider it. Contents of the
offer will not be revealed."
About 4,000 workers at nine plants, including seven refineries
accounting for 10 percent of U.S. refining capacity, continue to
walk picket lines in California, Kentucky and Texas.
In a text message to members seen by news media late on Wednesday,
the USW said: "minimal progress today."
Asked about the offer, a Shell spokesman simply said the two sides
had continued negotiations on Wednesday.
The two camps have been in a stalemate since the USW called walkouts
early on Sunday, saying Shell had left the negotiating table when
talks broke down.
The talks have been tougher than in years past. A drop of more than
50 percent in oil prices since June has eroded profits at major oil
companies, prompting executives to say they cannot afford to lift
wages for workers.
Further walkouts may be ordered at some of the other refineries and
chemical plants the USW represents if there is no progress in the
talks, the union has said.
The union represents a total of 63 refineries accounting for
two-thirds of national crude oil refining capacity.
LEAKS REPORTED
Also on Wednesday, two of the refineries affected by the strike,
Tesoro Corp's <TSO.N> Los Angeles-area refinery in Carson,
California, and Marathon Petroleum Corp's <MPC.N> Galveston Bay
Refinery in Texas City, Texas, reported leaks to regulators.
A Marathon spokesman said emergency responders in Texas City were
notified of the leak as a precaution.
Marathon Chief Executive Gary Heminger, whose company owns two of
the refineries where workers are on strike, deferred to Shell as the
lead negotiator regarding any comment, calling the talks a "delicate
situation."
Since bargaining first started on Jan. 21, the union has rejected
five offers from Shell.
The union is seeking annual pay increases of 6 percent, double the
size of those in the last agreement. It also wants work that has
been given in the past to non-union contractors to start going to
USW members, a tighter policy to prevent workplace fatigue and
reductions in members' out-of-pocket payments for healthcare.
[to top of second column] |
The USW has also said the issues directly affect the safety of
refinery workers.
While acknowledging that upstream businesses have been hurt, labor
leaders say independent refiners and the refining units of
integrated companies have been posting big profits thanks to cheap
prices for U.S. crudes they turn into gasoline and diesel.
The walkouts are in support of a nationwide pact that would cover
30,000 workers and mark the industry's first big strike since 1980.
Most of the affected refineries are being run near normal by
managers, retirees and others from non-union plants brought in to
replace workers.
"We were very well prepared," Heminger said on a results call. "We
would expect to have very strong operations."
One plant owned by Tesoro Corp <TSO.N> was shutting down due to
maintenance work already under way.
While refiners are promising little or no disruption to production,
wholesalers and others have snapped up supplies.
The strike helped lift gasoline futures <RBc1> early in the week,
though prices were down about 6 percent on Wednesday below $1.51 a
gallon.
(Additional reporting by Jessica Resnick-Ault in New York and
Kristen Hays in Houston; Writing by Terry Wade; Editing by Alden
Bentley and Alan Raybould)
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