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The Internal Employee Letter Shell Sent To Its Striking Workers
The largest US oil worker strike since 1980 is into its fourth week, as United Steelworkers Union members at 12 refineries responsible for one-fifth of US production capacity were walking picket lines. Shortly following the cessation of another round of unproductive talks between the USW and oil company representatives ended Friday night, the union notified Motiva Enterprises (a joint venture between Shell Oil and Saudi Refining) of a strike by its members at the company's refinery in Port Arthur, Texas, which has a capacity of 600,250 bpd.
The USW also gave notices of strikes to start 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. These refineries are also jointly operated by Royal Dutch Shell and Saudi Refining.
In a letter to striking employees at the Shell and Motiva facilities, Shell officials said the company has offered annual pay raises of 2% in each of the first two years of a proposed three-year pact and a 2.5% increase in the third year. Shell has also offered to evaluate issues of worker fatigue, which has been referenced as a factor in at least one fatal incident in the past decade. Shell also told striking USW members that the principal sticking point was non-union contractors who perform daily maintenance. The USW would like to these workers replaced with USW members.
Below are excerpts from an internal employee communication from Shell, issued Saturday, where the company provides an update on the current status of the negotiations with the United Steelworkers International Union:
The largest US oil worker strike since 1980 is into its fourth week, as United Steelworkers Union members at 12 refineries responsible for one-fifth of US production capacity were walking picket lines. Shortly following the cessation of another round of unproductive talks between the USW and oil company representatives ended Friday night, the union notified Motiva Enterprises (a joint venture between Shell Oil and Saudi Refining) of a strike by its members at the company's refinery in Port Arthur, Texas, which has a capacity of 600,250 bpd.
The USW also gave notices of strikes to start 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. These refineries are also jointly operated by Royal Dutch Shell and Saudi Refining.
In a letter to striking employees at the Shell and Motiva facilities, Shell officials said the company has offered annual pay raises of 2% in each of the first two years of a proposed three-year pact and a 2.5% increase in the third year. Shell has also offered to evaluate issues of worker fatigue, which has been referenced as a factor in at least one fatal incident in the past decade. Shell also told striking USW members that the principal sticking point was non-union contractors who perform daily maintenance. The USW would like to these workers replaced with USW members.
Below are excerpts from an internal employee communication from Shell, issued Saturday, where the company provides an update on the current status of the negotiations with the United Steelworkers International Union:
"One month ago, Shell Oil Company sat down at the bargaining table with a negotiating team representing national leaders of the United Steelworkers International Union (USW). Our goals were – and still are – to reach an agreement that respects the needs and interests of our employees and ensures the ongoing safety as well as economic health of Shell refineries and chemical plants."
"To that end, we have put seven offers on the negotiating table. The USW International Union leaders have rejected all seven of them. In addition to striking at our Deer Park refinery, chemical plant and lab, the USW on Friday, called for strikes at Motiva’s Port Arthur Refinery, Motiva Convent, Motiva Norco and Shell Chemicals Norco. In total, 14 facilities across multiple industry companies are facing strikes."
"As these strikes occur, we’re grateful for the strong relationships we have maintained with employees at our sites, which was demonstrated through the care and respect given during the handover to replacement workers thus far."
"We’re extremely disappointed that the USW International Union has seemed unwilling to achieve a timely and reasonable agreement, particularly since we have fostered strong cooperation with local members as evidenced by the productive outcome at many local negotiating tables."
"Indeed, we’re seeing little evidence that the USW’s leaders are interested in a meaningful settlement any time in the foreseeable future. We note, also, that it is not clear that the USW International Union leaders share our commitment to bargain respectfully at the negotiating table – preferring, instead, to misrepresent the facts in the media. With that in mind, I’d like to share with you more information about the position we have taken during the course of bargaining and the issues we are attempting to resolve."
"The central issue standing in the way of a settlement is not safety or fatigue, nor is it even about healthcare or wages, as the union claims. Those things are important to all of us, and it’s important to share that we have engaged in productive negotiations regarding each of these issues."
"The central issue of the USW’s national leaders is their continued demand that Shell replace routine maintenance contractors with USW-represented employees."
"It’s unreasonable for the USW to demand that Shell agree to their position. Our established practice of utilizing contractors supports the need for flexibility in hiring to accommodate economic cycles and maintenance schedules. And we’re open to a variety of ways to maintain a strong roster of skilled craftsmen available to each of our locations. But hiring flexibility is a proven way to protect our core Shell workforce and the long-term economic viability of our business. It is the most effective way to keep our sites running safely, efficiently and reliably. This strategy has served us well as we have not had to conduct any layoff in decades."
"Despite our disappointment, we will continue to negotiate in good faith."
"These strikes are unfortunate in light of Shell’s commitment to our employees and our diligent focus on safety and training, as well as our highly competitive compensation and benefits package."
"To that end, we have put seven offers on the negotiating table. The USW International Union leaders have rejected all seven of them. In addition to striking at our Deer Park refinery, chemical plant and lab, the USW on Friday, called for strikes at Motiva’s Port Arthur Refinery, Motiva Convent, Motiva Norco and Shell Chemicals Norco. In total, 14 facilities across multiple industry companies are facing strikes."
"As these strikes occur, we’re grateful for the strong relationships we have maintained with employees at our sites, which was demonstrated through the care and respect given during the handover to replacement workers thus far."
"We’re extremely disappointed that the USW International Union has seemed unwilling to achieve a timely and reasonable agreement, particularly since we have fostered strong cooperation with local members as evidenced by the productive outcome at many local negotiating tables."
"Indeed, we’re seeing little evidence that the USW’s leaders are interested in a meaningful settlement any time in the foreseeable future. We note, also, that it is not clear that the USW International Union leaders share our commitment to bargain respectfully at the negotiating table – preferring, instead, to misrepresent the facts in the media. With that in mind, I’d like to share with you more information about the position we have taken during the course of bargaining and the issues we are attempting to resolve."
"The central issue standing in the way of a settlement is not safety or fatigue, nor is it even about healthcare or wages, as the union claims. Those things are important to all of us, and it’s important to share that we have engaged in productive negotiations regarding each of these issues."
"The central issue of the USW’s national leaders is their continued demand that Shell replace routine maintenance contractors with USW-represented employees."
"It’s unreasonable for the USW to demand that Shell agree to their position. Our established practice of utilizing contractors supports the need for flexibility in hiring to accommodate economic cycles and maintenance schedules. And we’re open to a variety of ways to maintain a strong roster of skilled craftsmen available to each of our locations. But hiring flexibility is a proven way to protect our core Shell workforce and the long-term economic viability of our business. It is the most effective way to keep our sites running safely, efficiently and reliably. This strategy has served us well as we have not had to conduct any layoff in decades."
"Despite our disappointment, we will continue to negotiate in good faith."
"These strikes are unfortunate in light of Shell’s commitment to our employees and our diligent focus on safety and training, as well as our highly competitive compensation and benefits package."
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