The Paper, Allied-Industrial, Chemical, and Energy Workers International Union (PACE) has accepted a refinery workers' contract offer from Shell Oil Co. that is expected to set a pattern for other US refineries.
PACE will use the deal as the minimum contract acceptable for its 30,000 members in the oil and gas sector (OGJ Online, Jan. 30, 2002).
Shell submitted the offer to PACE Locals 2-898 and 4-750, and the union's National Oil Bargaining Policy Committee accepted it late on Jan. 31, shortly before the old contract expired.
PACE Administrative Vice-Pres. Jim Pannell said, "In view of the events of recent months and the decline of the economic climate, this settlement represents optimism on the part of the oil industry and our membership. We find ourselves in an increasingly difficult bargaining atmosphere. However, I feel we were able to reach an agreement that all involved can take pride in."
The pattern settlement is for contracts from Feb. 1 through Jan. 31, 2006.
Effective Feb. 1, all wages will increase 85¢/hr. They will rise 3.5% on Feb. 1, 2003, another 3.7%, on Feb. 1, 2004, and 4% on Feb. 1, 2005. The union had sought $1.40/hr in the first year and 6% each in the second and third years.
The shift bonus will be increased 75¢/hr for the evening shift (3-11 p.m.) and $1.50/hr for the graveyard shift (11 p.m.-7 a.m.).
Shell reaffirmed its commitment to pay 80% of health insurance premiums, with employees paying the rest.
The $250,000 occupational death benefit will be doubled to $500,000 if the death was a direct result of a work accident. PACE had sought $1 million.
The agreement clarifies the successorship letter of understanding, which applies when a plant is taken over, and it will continue at facilities where it is now applicable.
There was no change in the existing letters of agreement on layoff notice, plant closure, rate retention, national health insurance, and health and safety.
