By the OGJ Online Staff
HOUSTON, Jan. 30 -- The Paper, Allied-Industrial, Chemical, and Energy Workers International Union (PACE) Wednesday rejected a wage and benefits offer from Shell Oil Co., the lead refiner in this year's bargaining.
The current labor agreement, which covers 30,000 workers in the oil and gas sector, expires at 12:01 a.m. Feb. 1.
Shell's offer covered wages, a shift bonus, and occupational death benefit for its workers at Deer Park, Tex., Port Arthur, Tex., and Norco, La.
Shell has been designated the lead refiner for the negotiations, and when it and PACE reach an agreement, that pact will become the pattern for the rest of the industry.
Shell proposed a 3-year contract that would increase hourly wages 60¢/hr the first year, 3% the second year, and 3.5% the third year.
The shift differential is 50¢/hr for the 3-11 p.m. shift and $1/hr for the 11 p.m.-7 a.m. shift. Shell proposed an increase to 75¢/hr and $1.25/hr, respectively. PACE said oil workers have not received a shift differential increase since 1978.
Shell also proposed increasing the benefit to $350,000 from $250,000 for work-related accidental death.
PACE said its National Oil Bargaining Policy Committee rejected Shell's offer.
Administrative Vice-Pres. Jim Pannell said, "The policy committee is concerned about the lack of a more substantive offer from the oil industry. The industry certainly can afford a more reasonable offer that addresses the needs of oil workers and their families.
"Unless the industry responds in a more realistic way to the demands of the workers, a strike is inevitable." He said the union is discussing strike targets.
PACE is seeking a clause in contracts that would ensure jobs are retained in the event of a refinery or petrochemical plant sale, merger, or joint venture involving an entire facility or any portion of it.
It wants job security, including an apprentice training program.
For all job classifications, the union is seeking a $1.40/hr increase in the first year and 6% each in the second and third years.
It wants a $1 million benefit in the event of an occupational death and substantial increases in injury benefits.
PACE Pres. Boyd Young said earlier, "The petrochemical sector is the most dangerous and hazardous industry in the world today, both in terms of worker safety and the overall health of the community."
