USW Rejects Marathon Offer as Refinery Strike Looms

Key Negotiation Updates

Negotiators for the United Steelworkers union (USW) and Marathon Petroleum are in continuous talks as a strike deadline approaches for numerous U.S. refineries. The USW has rejected an initial wage offer from Marathon, the lead negotiator for companies including Exxon Mobil and Chevron, increasing the possibility of labor action.

Overview of the Stalemate

The rejected proposal included a 13% wage increase over a four-year contract for the 30,000 workers represented by the USW. Key points of contention in the talks include cost of living adjustments, healthcare costs, and the implementation of artificial intelligence in plants. The union is also pushing for stricter safety standards, which has reportedly met resistance.

Potential Industry Impact

While the contract expiration deadline looms, a strike is not guaranteed. The union has previously used rolling 24-hour extensions to continue negotiations. Should a strike be authorized, it would only affect specific plants. During the last major strike in 2015, affected refineries maintained operations using temporary replacement workers, mitigating immediate supply disruptions.

Summary

Talks remain active as both parties work towards a mutually satisfactory agreement. Marathon Petroleum has stated its commitment to bargaining in good faith. The industry is closely watching for either a new national pattern agreement or the first major oil worker strike in years.

FAQ

Q: Who are the main parties in the negotiation?
A: The United Steelworkers union (USW) and Marathon Petroleum, which is negotiating on behalf of 26 U.S. refiners and chemical companies.

Q: What was the core of the rejected offer?
A: The offer was a 13% wage increase distributed over a four-year contract term.

Source: Investing.com