By Erwin Seba
HOUSTON, Feb 6 (Reuters) – The United Steelworkers union adopted on Friday a national agreement negotiated with Marathon Petroleum for use in contracts between 30,000 oil industry workers and refineries and chemical plants, the union said in a statement.
The four-year agreement will lift pay for hourly workers by 15%. It also provides a $2,500 signing bonus for USW-represented employees.
It was approved by the USW National Oil Bargaining Program policy committee that represents oil workers from around the U.S., the union said.
The agreement – which provides a 4% pay increase in the first and fourth years and a 3.5% increase in the second and third years – was proposed on February 1. Previous offers since negotiations began in late January had been rejected.
Marathon was the lead negotiator for 26 U.S. refiners and chemical companies, including Exxon Mobil, Chevron and Valero Energy. The USW represents workers at plants that account for two-thirds of U.S. crude oil refining capacity.
Union officials held meetings with local unions to gauge their willingness to accept what became Marathon’s last, best and final offer, said sources familiar with the negotiations. The USW had hoped to gain a 16% overall increase during the week, but Marathon stood firm on its final proposal, the sources said.
Union leaders had to contend with the expectations of rank-and-file members who were hoping the USW would achieve a 25% increase over the course of the new contract, with cost-of-living adjustments if inflation exceeded the annual pay increase.
The average inside operator at a refinery makes about $50 an hour.
The new contract will begin replacing the current one as it is adopted at each plant. The current agreement was extended on a rolling, 24-hour basis just hours before it was due to expire at 12:01 a.m. on February 1.
(Reporting by Erwin Seba; Editing by Nathan Crooks and Nia Williams)
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