Refiners, union reach tentative deal

Refiners and union employees reached a tentative contract agreement Tuesday, averting a strike that would have idled as many as 30,000 workers who produce almost two-thirds of the gasoline, diesel and other fuels made in the U.S.

"The settlement means there will be no interruption in refinery operations, which would have impacted product supply in advance of the gasoline driving season and probably led to higher prices," said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

The contract talks included about 210 union workers at Holly Corp.'s Woods Cross refinery and Tesoro Corp.'s Salt Lake plant. Local union members wanted safety standards and procedures to be strengthened, union officials said.

Julie Holzer, a spokeswoman for the United Steelworkers Union District 12, did not return telephone calls from the Deseret News seeking comment Tuesday. A Tesoro spokesperson, Lynn Westfall, and a Holly spokeswoman, Cindy Gubler, also did not return phone calls seeking comment.

Negotiators for the union and Royal Dutch Shell Plc, which represented employers in the talks, agreed to terms after 12 days of meetings in Austin, Texas, said United Steelworkers International Vice President Leo W. Gerard. The union said it didn't win the safety improvements it sought.

"These were tough negotiations, given the economic conditions of an economy still in a total free-fall," said Gerard in a statement. "The oil companies were not willing to work with us fully to improve process safety."

The union was seeking higher wages, a cost-of-living adjustment, and full medical, dental and vision-care benefits for employees and retirees. Workers also wanted improvements in plant safety practices after a March 2005 explosion at BP Plc's refinery in Texas City, Texas, killed 15 people and injured 170.

"We opted to reach a tentative agreement on economic issues and withdrew our bargaining demands for the safety language we and the public sorely need," said Steelworkers International Vice President Gary Beevers, the union's top negotiator. "But let it be clear, we are not finished with our struggles for meaningful change in the health and safety arena."

The contract calls for 3 percent raises for each year of the three-year contract and a $2,500 signing bonus for members who approve it by Feb. 16, said Eric Hamilton, chairman of the committee at the Motiva refinery in Port Arthur, Texas, which was the first to receive the contract offer. Hamilton said his local members will vote Feb. 11.