Shell Will Run Its Second-Largest US Refinery WITHOUT Union Workers
http://oilpro.com/post/11058/shell-run-its-second-largest-us-refinery-without-union-workers
... The contingency plan for Shell’s 327,000 bpd refinery in Deer Park, Texas....
Shell also said that the contingency plan was recently set in motion at its chemical plant in Norco, Louisiana....
Shell said that the company had been preparing staff to replace USW workers since the strike commenced. After putting in place non-union Shell workers to run operations at the Deer Park refinery, “we turned our focus to bringing in and training additional staff,” the company said....
In a letter to staff, Aamir Farid, Shell’s Manufacturing Vice President, Americas, discusses transitioning from contingency plans to business as normal operations as USW strike continues.
Here is the letter in its entirety:
“When our contract with the USW expired and employees were called out on strike this past February 1, we activated our contingency plan for Deer Park and recently activated the plan for the Norco Chemical Plant.”
“Similar contingency plans have been in place for all USW represented sites for well over 12 months. These plans have been carefully developed and tested to assure that we are able to run our facilities safely and maintain our commitments to our neighbors and customers. The strength of the plans and our employees has been demonstrated at both Deer Park and Norco.”
“We are disappointed that the USW International Union seems unwilling to achieve a timely and reasonable agreement; but, we are also determined to continue running our business – this is in the best interest of our employees, our customers, the sites and the communities in which we operate. As the USW strike goes into its fifth week at Deer Park and second week at Norco Chemical, I want to provide an update on what to expect as we shift our focus from contingency to business continuity.”
“When USW represented workers were directed by the union to stop work at Deer Park on February 1, we began the handover of the facility to Shell trained operators. Following procedures, we ensured everything was operating in accordance to people and process safety protocols.”
“Once the handover was completed, we turned our focus to bringing in and training additional staff. These are qualified Shell employees, all of whom receive training prior to entering the rotation. The conclusion of this process is focused on returning our operations to a full rotation.”
“At Deer Park, that goal will be achieved mid-summer. By then, we expect to have trained and deployed all required relief employees to return to full rotation. We recognize and appreciate the contribution of those team members running our assets during this time —a key step in our business continuity plans is to have team members return to their normal duties.”
“The steps we have implemented as part of our contingency and business continuity plans have allowed us to maintain safe and reliable operations at our manufacturing sites, deliver product to our customers, grow our business and continue to provide good jobs for our employees.”
“We’ll keep moving forward. We are committed to you, as well as to our communities and customers. We are unwavering in those commitments and they remain unchanged. They will guide each and every decision and action as we move forward—together, as one team.”
In total, the USW represents workers at locations that cumulatively represent 64% of US fuel production. On February 20, the strike expanded to include the largest refinery in the US: Motiva Enterprises LLC’s Port Arthur, Texas, refinery. On the same day, USW members at Motiva’s plants in Convent and Norco, Louisiana, went on strike. The USW has rejected seven contract offers from Shell. Currently, about 6,550 workers have joined the strike.
Here is the list of facilities impacted by the strike:
LyondellBasell in Houston, TX;
Marathon Galveston Bay Refinery in Texas City, TX;
Marathon Houston Green Cogeneration facility, Texas City, TX;
Marathon Refinery, Catlettsburg, Ky;
Shell Deer Park Refinery, Deer Park, TX;
Shell Deer Park Chemical Plant, Deer Park, TX;
Tesoro Anacortes Refinery, Anacortes, Wash.;
Tesoro Martinez Refinery, Martinez, Calif. (the only refinery shut down so far because of the strike);
Tesoro Carson Refinery, Carson, Calif.
BP Whiting Refinery, Indiana
BP Toledo Refinery, Ohio
Motiva Refinery, Port Arthur, TX
Motiva Refinery, Norco, LA
Motiva Refinery, Convent, LA
Shell Chemical Plant, Norco, LA
Peeling Back The Onion - Examining The Layers Of The Oil Worker Strike
http://oilpro.com/post/11046/oil-worker-strike-end-bang-whimper
Timeline Recap
January 21: Oil companies led by Shell and USW representatives started talks for a new nationwide contract covering hourly workers at 63 US refineries that together represent 64% of the refinery capacity in the US. The USW said at the time safety upgrades at aging refinery and petrochemical facilities were the main points of contention.
January 31: The USW rejected the fourth proposal submitted by Shell on behalf of oil companies covering employees at 63 US refineries Saturday night, only hours before the current contract was set to expire.
February 1: The USW initiated a strike at 9 refineries after rejecting Shell’s fifth contract offer. “Shell refused to provide us with a counter-offer and left the bargaining table,” said USW International President Leo W. Gerard in a statement. “We had no choice but to give notice of a work stoppage.” USW members continued to work at the other facilities operating under “rolling 24-hour” contract extensions.
February 2: Tesoro’s 166,000 bpd Golden Eagle refinery in Martinez, California, shut downs down its remaining process units. Half of the facility was already shut down for planned maintenance.
February 3: Tesoro’s Carson refinery reports a unit failure and unplanned repairs.
February 4: Marathon’s Galveston Bay refinery reports a “small diesel leak” at an ultracracker unit
February 5: The USW rejects Shell’s sixth contract offer.
February 8: The strike expands from 9 to 11 facilities, as walkouts began at BP’s Whiting, Indiana, and Toledo, Ohio, refineries. The percentage of US refining capacity at stake increased from 10% to approximately 13%. On the same day, Shell’s Deer Park refinery experiences an upset at a fluid catalytic cracker.
February 13: Shell releases a statement, saying in part, “As we close out the third week of negotiations with the USW, we remain committed to maintaining safe operations as part of the normal course of business and to providing quality products to our customers who depend upon us.”
February 18: The USW rejects Shell’s seventh contract offer. On the same day, LyondellBasell’s Houston facility writes a letter to striking employees consisting of an articulation of the efforts both sides made before the start of the strike, and an invitation to return to work.
February 21: Shortly following the cessation of another round of unproductive talks between the USW and oil company representatives ended the previous night, the union notified Motiva Enterprises of a strike by its members at its refinery in Port Arthur, Texas (the largest in the US). The USW also gave notices of strikes at Motiva’s refineries in Norco and Convent, Louisiana, and the Shell chemical plant in Norco. Capacity at these facilities is 235,000 and 238,000 bpd. Motiva’s three refineries operate with a combined refining capacity of over 1 million barrels of crude oil per day. The total number of affected facilities increased to 15 (including 12 refineries) with 6,550 USW members on strike. The 12 refineries represent nearly 20% of the capacity in the US.
February 21-22: Shell writes an internal employee communication to striking employees at the Shell and Motiva facilities, identifying “The central issue of the USW’s national leaders is their continued demand that Shell replace routine maintenance contractors with USW-represented employees.”
February 25: International President of USW, Leo W. Gerard, issues a joint statement with the President of North America’s Building Trades Union (NABTU), Sean McGarvey. The stated purpose of the letter is to address the confusion that both parties say surrounds the USW negotiations with the US refinery industry concerning the scope of its members’ work, amid the largest oil strike in 35 years.
February 26: The USW sends another letter to its members in the wake of Shell and other companies’ overtures to its members. The USW rooted its concerns in the “safety and well-being” of its members. “During this round of negotiations, the union has made many proposals to address the safety and well-being of our members...The companies downplay our safety concerns,” the letter said.
February 27: In a press release, Shell clarifies its position that “The central issue standing in the way of a settlement is not safety or fatigue, nor is it even about healthcare, wages or ‘no retrogression’ as the union claims. The central issue is the USW’s demand that Shell replace routine maintenance contractors with USW-represented employees.”
March 2: Shell announces it will run its second-largest US refinery in Deer Park, Texas, without USW labor. Shell also said that the contingency plan was recently set in motion at its chemical plant in Norco, Louisiana.