LyondellBasell replaces USW complaint: Update 2

  • Market: Crude oil, Oil products
  • 04/27/15

Adds union comment

LyondellBasell has replaced a federal complaint alleging the union representing most of the workers at its Houston refinery bargained in bad faith and attempted to coerce employees.

The US National Labor Relations Board (NLRB) listed a complaint filed with the agency by LyondellBasell on 26 February as withdrawn. The company said it withdrew the complaint last week after working with the federal agency and replaced it with a complaint on bargaining and strike actions.

United Steelworkers (USW) employees of the 268,000 b/d Houston, Texas, refinery remain on strike. LyondellBasell imposed a final contract offer last week after months of impasse and urged workers to return from the strike lines.

The company last week told investors that the strike had affected operations. LyondellBasell delayed maintenance work on a gasoline-producing fluid catalytic cracking (FCC) unit planned for the fourth quarter into early 2016. But operations continue with backup staff and an unspecified number of union employees who have returned to work.

The USW has filed its own complaints with the NLRB alleging bad faith bargaining with LyondellBasell. Union officials denied there was any impasse with LyondellBasell and said there was still room for negotiation. USW said a federal mediator had been unsuccessful in getting LyondellBasell to return to talks.

Protracted strikes continue at four US refineries operated by three companies, including LyondellBasell, more than a month after national talks settled disputes at most affected facilities. BP continues talks at its 157,000 b/d joint venture refinery in Toledo, Ohio, and 410,000 b/d refinery in Whiting, Indiana, and Marathon Petroleum workers remain on strike at that company's 475,000 b/d refinery in Texas City, Texas.

USW workers across the country went on strike 1 February as contracts with the workers expired and negotiations stalled. The strike spread to include 12 refineries and 15 total sites representing 20pc of US refining capacity. Before a 12 March agreement ended work stoppages at most facilities the strike was the longest industry-wide since 1980.

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