SAN FRANCISCO: Chevron Corp began turning over some operations at a California oil refinery to replacement workers on March 20 ahead of a United Steelworkers (USW) strike set to begin shortly after 12am PDT on March 21.
A union official said it had notified Chevron of its intent to begin a strike at the plant outside of San Francisco after negotiations failed to reach agreement on a new labour contract.
The existing contract at the Richmond, California, refinery expired Feb 1. Both sides had agreed to a rolling extension that was not renewed by the union after workers rejected the latest offer.
The 245,000 barrel-per-day plant is the second-largest refinery in the state, employs more than 500 union-represented workers and produces gasoline, jet fuel and diesel fuel.
“It’s disappointing that Chevron would walk away from the table instead of bargaining in good faith,“ said Mike Smith, chair of the USW’s National Oil Bargaining Programme.
Chevron is committed to continuing to negotiate toward an agreement, a spokesperson said in a statement on March 20.
The San Ramon, California-based company was “prepared to continue normal operations safely and reliably to provide the energy products that are needed by consumers,“ the spokesperson added.
California has some of the highest fuel prices in the nation with a gallon of unleaded regular gasoline on March 20 selling for US$5.847 (RM24.56) and a gallon of diesel for US$6.258, according to motorist group AAA.
A Chevron turnover team began taking control of refinery operations manned by union workers on Sunday afternoon ahead of the strike deadline, according to a person familiar with the matter.
The USW and US refiners last month reached a national agreement that provides a 12% pay raise over four years to the union’s about 30,000 members at oil and chemical companies. Each local union separately negotiates a contract covering plant-specific issues, and Richmond workers have twice voted down Chevron proposals.
On March 19, the union had advised machinists to go to the refinery and remove their personal tools before the contract extension expires.
Union members have twice voted to reject contract proposals put forward by Chevron. The last vote, completed on March 19, was overwhelmingly against what was called the company’s last, best and final offer, according to messages posted on-line by USW Local 12-5. - Reuters
Source: The Sun Daily
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