MOSCOW (MRC) -- US refinery and chemical plant workers agreed to focus on pay and health insurance in coming union contract talks, said people familiar with United Steelworkers (USW) union deliberations, setting up a conflict with refiners struggling to throw off losses from weak demand, reported Reuters.
Proposals setting an agenda for pay increases, improved health insurance and severance pay were adopted at the union's national oil bargaining policy conference conducted online. The national agenda must still be approved by local union members.
Three-quarters of the 30,000 oil and chemical plant workers represented by the USW must approve the plan before it can be used in negotiations that begin in January between the union and Marathon Petroleum Corp, which is the lead negotiator for oil companies.
The current three-year agreement expires at 12:01 a.m. on Feb. 1, 2022.
The talks with refinery and chemical plant owners will get underway as the Delta variant of the coronavirus is threatening to reduce petroleum demand more than a year after the initial outbreak of the COVID-19 disease forced lockdowns and work-from-home policies.
The pandemic cut gasoline consumption 13% last year, forcing some refiners to shut production lines and take on new debt to finance operations.
This will be the second round of negotiations since a nationwide strike in 2015 saw 7,000 workers from 12 refineries and three chemical plants join picket lines. It was the first nationwide strike in 35 years.
As MRC informed before, earlier this month, the international president of the United Steelworkers (USW) union, Thomas Conway, called for refinery and chemical plant workers to include decarbonization as part of contract proposals to be made to US oil companies in January. In remarks to the USW national oil bargaining policy conference, Conway said decarbonization projects should be viewed as necessary capital investment programs.
We remind that Marathon, the nation’s largest refiner, was chosen to replace Shell Oil Co, the US arm of Royal Dutch Shell, which was the lead negotiator for the oil companies from the late 1990s through 2019. Shell has reduced the number of the refineries it operates in the United States and by the end of this year will operate only one plant. The 2022 contract talks will come after national refining capacity fell 4.5% in the COVID-19 pandemic.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC