By the OGJ Online Staff
HOUSTON, Oct. 8 -- The Paper, Allied-Industrial, Chemical, and Energy Workers International Union has adopted recommendations for oil bargaining for 2002 that focus on job security after mergers.
PACE proposes to improve the protection of the work force in the event the facility is involved in a sale, merger, or joint venture. The union also proposes that the employing company agree not to reduce the number of full-time mechanical department positions.
"While wages and benefits are as important in these negotiations as they have historically been, the rash of mergers and acquisitions has given job security a new prominence and urgency in these negotiations," said PACE Administrative Vice-Pres. Jim Pannell.
Current contracts expire Feb. 1. They cover 30,000 workers in the production, refining, marketing, and transportation sectors.
The oil bargaining policy committee will submit its bargaining proposals to local unions, which have until Nov. 23 to ratify them.
Shell Oil Co. is expected to be the lead company in negotiations with PACE during this round of national bargaining, and its settlement with the union will set the pattern for the industry.
Other 2002 PACE oil bargaining proposals include:
-- A 3-year term of agreement.
-- A joint union-management apprenticeship and incumbent training program, intended to reduce contractor use by half.
-- A wage increase of $1.40/hr to all classifications effective Feb. 1 and wage increases of 6% in the second and third years of the contract.
-- A requirement that the employer contribute at least 90% of the hospitalization, medical, and dental insurance premium.
-- A requirement that the company provide a "substantial" increase in benefits to workers and their beneficiaries in the event of on-the-job disabling injuries or death.
-- A shift differential of 5% of the top wage in the contract for the evening shift and 10% for the graveyard shift.
-- A requirement for retirement plans to provide at least $60/month/years of service and that pension plans be modified to cap the Social Security offset at 25%.