Rick Hagar
Gulf Coast News Editor
Members of the Oil, Chemical, and Atomic Workers International Union (OCAW) threaten to walk off their jobs after Jan. 31 unless industry contends with some of their safety/environmental and dependent child care concerns.
More than 250 contracts covering more than 30,000 workers mostly expire Jan. 31. Contract negotiations currently under way involve most refineries and petrochemical plants in the U.S.
The union stance is a bit stronger this year than in the previous two collective bargaining sessions, mainly because market conditions have since improved considerably.
The climate of a depressed petroleum industry has ended in areas where U.S. refining and petrochemical businesses are concentrated.
In addition, a rash of accidents that killed more than three dozen workers in U.S. refineries and petrochemical plants the last 2 years has galvanized union membership.
STRIKE UNLIKELY
Union and industry negotiators expect a general strike this year will be avoided by an amicable settlement.
However, safety/environmental and child care concerns are shaping up as the issues that might lead to a general strike.
"We have a pretty modest proposal on the table," said OCAW Vice Pres. Robert E. Wages III. "It involves issues that industry ought to address."
OCAW last week rejected a contract settlement offered Jan. 4 by Amoco Corp., which had stepped forward with what became the industry pattern contract in the last two rounds of negotiations (OGJ, Feb. 8, 1988, p. 28).
The Amoco offer was quickly followed by similar contract offers from Shell Oil Co., Chevron Corp., Texaco Inc., ARCO, Unocal Corp., Mobil Oil Corp., Exxon Corp., and BP America Inc.
All, however, were rejected by OCAW Jan. 8.
CONTRACT OFFERS
Wages said the contract offers dealt only with issues involving wage, insurance cost, and contract term.
"That's not going to get them there," he said. "They are not going to get an agreement where industry thinks all it has to address is wage and hospital/medical insurance cost."
Union negotiators last week were waiting for a second settlement offer. Industry spokesmen declined to comment about the negotiations.
Meanwhile, said Wages, there as yet does not appear to be any significant local issues that could lead to a strike. He said the union last week was in the process of determining what, if any, local issues existed.
OCAW discussions to merge with the United Mine Workers of America are proceeding cautiously, said Wages. A previous effort at merging the two unions collapsed 2 years ago.
OCAW ISSUES
The union hopes to avoid a strike, but Wages said it is too early to qualify the nature of the bargaining sessions.
OCAW presented industry last December with a 10 point national oil bargaining proposal (see table).
The union wants a wage increase of $1.25/hr the first year and $1.25/hr the second year.
Wages said the union in previous collective bargaining sessions had not specified an amount for the wage increase it sought. This time, it considered cost of living in connection with wage hikes achieved by the union in the last couple of agreements.
OCAW wants the employer to assume 90% of the premium cost for medical/hospital insurance premiums and 100% of the dental insurance premium. OCAW previously had sought fully paid insurance.
"We've acknowledged that cost sharing is something we're going to have to live with," he said, adding that he believes industry will accept the fully paid dental insurance proposal.
OCAW wants shift differential payments to be increased to $1.50/hr for midnight shifts, $1/hr for evening shifts, and 50/hr for day shifts.
"This proposal is not radical or unique," said Wages.
SAFETY/ENVIRONMENT
Wages said OCAW members are more adamant on safety and environmental issues than at any time in the 1980s because of some catastrophic accidents.
The accident that did the most to solidify the union position, said Wages, was the Oct. 23, 1989, explosion at Phillip 66 Co.'s Houston Chemical Complex that killed 23 people (OGJ, Nov. 13, 1989, p. 42).
OCAW wants employers to establish a new job classification called operator/monitor to ensure adequate safety monitoring. OCAW wants the position to have some independence in direct reporting and its training to be acceptable to the union.
"We don't want some schlock training, which we've seen occur before with this industry," said Wages.
OCAW wants an employee suffering a disabling injury on the job to receive full pay until the employee is able to return. In addition, OCAW wants a $1 million death benefit paid for an employee killed on the job.
"We hear horror stories how people are injured on the job, how they exhaust their sick leave, how collections have to be taken so they won't lose their homes and can take care of their families," said Wages.
"Some have been terminated because they couldn't come back to work in the time frame that a given company wanted."
Wages said the union membership wants industry to treat its people fairly when they are injured or killed on the job.
"It's on the table because it's an issue not being adequately addressed by our employers," he said.
He said industry in recent years has been merely reacting to problems instead of taking the initiative. "They know they ought to do something," he said.
JOB SECURITY
OCAW wants the number of employees in the bargaining unit to be maintained for the contract's duration. Job security has been an OCAW issue for a number of years.
"The industry's stock reply is that the best job security is a profitable enterprise," said Wages.
"That's crap, because they shut down profitable enterprises depending on what suits their fancy at any given point in time."
OCAW also wants no retrogression in previous contract terms and conditions. Wages said the union over the years has successfully negotiated a number of items as part of its national oil policy, and intends for them to be renewed and incorporated in the new collective bargaining agreement.
The union wants continuation of a 2 year agreement.
OCAW also wants wage parity for its members in marketing/transportation operations and a genuine effort by employers to make sure drivers get the assistance they need in obtaining Department of Transportation driver's licenses.
OCAW REJECTION
Wages said the Jan. 4 offer made by Amoco and followed by most of the other major companies looks good at first glance.
Amoco and other top refiners declined to comment about the negotiations.
Wages said Amoco offered a 3% wage increase the first year and an additional 3% increase the second year.
Amoco also offered to increase its contribution to the premium cost of hospital/medical insurance by as much as $30/month for family coverage the first year and as much as another $30/month for family coverage the second year, Wages said.
Amoco offered a 2 year contract, which was what OCAW sought.
Wages said the offer "isn't in the ballpark. The workers deserve higher wages, and the medical contribution does not make up for what was lost the last couple of sessions."
Based on what it wanted, OCAW gained little ground in its acceptance in early 1988 of Amoco's Feb. 1, 1988-Jan. 1, 1990, contract offer. The union obtained wage increases comparable to those in the 1986-87 settlement, which OCAW had called inferior at the time.
In addition, the union lost on its initiatives for job security, a union orientation program, and an additional holiday for the current contract period.
The current contract gave a $900/employee lump sum bonus, a 300/hr across the board wage hike the first year, and a 3% wage increase the second year. The 1986-87 settlement provided for 28.30/hr wage hikes.
National average pay rate for refinery workers is $15.18/hr, with shift workers averaging 50/hr more.
In the current agreement, Amoco also boosted its monthly contribution to medical/hospital insurance premiums by $10/month for family coverage the first year and $4/month for single coverage during each of the 2 years of the agreement, compared with the 1986-87 agreement.
WHAT TO EXPECT
Wages and the few industry spokesmen who agreed to speak without attribution about the negotiations said there will be a genuine effort made to reach a settlement by Feb. 1.
Wages said OCAW is not displeased by the speed at which negotiations are progressing, only by industry's failure thus far to deal with other issues.
"If some of the other issues are not addressed, there is an absolute probability of a strike after Feb. 1," he said.
Wages said the union is in a much better position to negotiate this year than in similar collective bargaining sessions in the 1980s. The membership, he said, is more unified than in prior years.
For one thing, net profits of the 15 largest companies increased by $11.1 billion to $21.1 billion in 1988 vs. 1987. Another factor has been the rash of accidents in plants.
"We will not get an agreement by industry nickel and diming us," said Wages.
"Employees are getting cynical. They have not seen much of a wage increase in the last couple of agreements. They've been understanding so far, but enough is enough."
One of the few industry spokesmen willing to discuss the OCAW negotiations said his company is optimistic that there will not be a strike.
However, he said, his company is prepared to weather a strike.
In past strikes, he said, refineries and petrochemical plants generally were able to keep running at near prestrike levels.
If a general strike should develop, there will be few if any changes in process operations, He said manpower would be filled by existing management, supervisory personnel, and people brought in from other locations.
Wages agrees that operations won't be much affected by a short strike.
"But I think a prolonged strike would hurt," he said. "The record is clear that the refineries are not in very good repair."
The industry spokesman said his company's refineries and petrochemical installations are in as good repair today as they were 10 years ago.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.