After 2 months of industry-labor deadlock, Amoco Oil Co. proposed a pattern contract for U.S. refinery workers that was accepted by the Oil, Chemical, & Atomic Workers International Union (OCAW).
While some details may change at certain locations, the Amoco contract is expected to pave the way for terms in 300 labor contracts industry-wide in the U.S. OCAW had rejected three previous Amoco contract offers (OGJ, Jan. 29, p. 33; Feb. 5, Newsletter).
The pattern contract emerged Feb. 2 after existing contracts had expired Jan. 31 and temporary rollover contracts were in place. Negotiations on individual contracts are still in progress around the U.S., and final resolution is expected in the next 2-3 weeks.
Most refineries and other facilities covered by OCAW contracts are operating as usual under temporary rollover contracts with union workers. A notable exception is Crown Central Petroleum Corp., Baltimore, which locked out union workers at its Pasadena, Tex., refinery.
Amoco is the third largest refiner in the U.S. Combined crude capacity of its five plants is 1,008,700 b/cd (see table, OGJ, Dec. 18, 1995, p. 44).
As of presstime last week, these companies had embraced the terms in the Amoco pattern contract: ARCO, Mobil Oil Corp., Phillips Petroleum Co., Shell Oil Co., Conoco Inc., Tosco Corp., Quaker State Corp., and Mapco Petroleum Inc.
Among that group are two companies that rank among the 10 largest refiners in the U.S. Shell ranks No. 2 with 1,021,300 b/cd of crude capacity, while Mobil Corp. is No. 5 at 970,600 b/cd.
OCAW reaction
Some aspects of the new pattern contract were labeled a disappointment by OCAW Pres. Robert E. Wages and other union sources.
However, the contract provides the union with increased bargaining power and notice periods during layoffs, as well as a wage hike. OCAW had hoped for improved job security provisions and wage increases higher than the pattern contract provides.
Wages told Oil & Gas Journal he is pleased with wage hikes in the pattern contract because they help workers cope with inflation. The union also is pleased with provisions giving it more leeway in obtaining benefits for workers who are laid off.
A point critical to OCAW is that industry agreed to continue paying 80% of medical insurance premium increases or a comparable fixed dollar amount. Where the latter applies, Wages said, the fixed dollar amount policies are so complicated that they may delay final action on contracts in some locations.
Contract details
- A general wage increase of 40/hr retroactive to Feb. 1, 1996, with another 50/hr next year and a further 61/hr the third year of the contract. OCAW prevailed on getting a 3 year contract term vs. a 2 year term industry originally offered but had sought wage increases of $1.25/hr for each year of the contract.
- An increase in notice time to 90 days from 60 for layoffs with provisions for union input on reducing or eliminating the need for layoffs.
- Expanded rights to bargain for vocational training or outplacement assistance or employment at other company facilities for laid-off workers, as well as benefits such as severance pay, pension benefits, and continued medical and group life insurance coverage for laid-off workers.
- Permission for the union to bargain at the international level for layoff benefits rather than just at the local level.
- A continuation of 80-20 cost sharing of medical benefits or applicable fixed dollar amounts as premiums rise, as well as increased company contributions to dental plans.
Specific provisions of the new pattern contract include:
Crown Central dispute
The dispute between OCAW and Crown Central continued late last week.
Claiming workers were sabotaging and vandalizing its 103,000 b/d refinery, Crown Central locked out workers Feb. 5. The company kept the refinery running by bringing in managers and salaried personnel from other locations.
During the preceding weekend, Crown Central had disclosed plans to lay off 29 of the 271 OCAW union workers at the refinery.
"During the weekend, several incidents occurred in the plant that apparently were intended to disrupt normal operations," Crown Central said.
"These actions and the unsuccessful status of negotiations have forced the company to implement a lockout, which is regrettable but essential to ensure the safety of personnel, the physical plant, and the local community."
Crown Central said the incidents included forcing equipment into emergency shutdowns, tightening valves to render them unserviceable, and vandalizing critical instruments.
Crown Central wants changes in the pattern contract allowing it to determine staff levels, promotions, seniority, layoffs, medical benefits, and wages.
The company said it is operating the Pasadena refinery at a loss and contends refining margins are too low to justify paying what OCAW wants "in a difficult international market."
OCAW is challenging Crown Central's claims in court.
Wages accused the refiner of trying to "gut the pattern contract and (making) false allegations of labor sabotage to obtain what they want."
Crown Central called in a mediator to help with union talks.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.
