Talks continue in refinery workers contract

Market Watch ^ | 1:54 p.m. EST Feb. 2, 2009 | Steve Gelsi

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Lynne Baker, spokeswoman for United Steelworkers, said Monday morning that there's no threat of a strike for at least 24 hours. "Both sides have been talking," Baker said. "They are making some progress." Oil major Royal Dutch Shell holds the position of lead negotiator for the contracts that expired Feb. 1, covering 86 plants that represent about 64% of U.S. refining capacity.

The talks cover the 24,000 workers whose contracts expired Sunday; an additional 6,000 employees would also be affected if a strike is called, Baker said. Exxon Mobil, Valero, BP and ConocoPhillips also operate facilities covered by the union.

The union negotiations center on health care and safety language in the wake of the 2005 fire at a BP plant that killed 15 and injured 140, Baker said.

Shell spokesman Stan Mays said talks continue to progress.

"Shell is committed to resolving the remaining issues at the negotiating table," Mays said in an e-mail to MarketWatch. "We are optimistic that a mutually satisfactory agreement can be reached with the USW."

The USW agreed to a "rolling 24-hour" contract extension as both sides negotiate or until the union terminates the agreement, Mays said.