Steelworkers Reach Tentative Contract with Shell

by Mike Hall, Feb 4, 2009

The United Steelworkers (USW) reached a tentative agreement yesterday with Royal Dutch Shell PLC—the lead company for the oil industry—on wages, benefits and working conditions that will become the minimum standards when local union negotiations get under way.

While agreement on the economic terms was reached, USW President Leo W. Gerard said safety issues remain.

These were tough negotiations, given the economic conditions of an economy still in a total free fall. The oil companies were not willing to work with us fully to improve process safety.

USW Vice President Gary Beevers, head of the union’s National Oil Bargaining program, criticized the industry for placing “so many roadblocks” in negotiations to improving safety conditions. But he also noted that the nation’s collapsing economy hung over the talks.

We certainly didn’t want to contribute to the economic struggles of the American public by calling a national strike and possibly seeing the spiking of gas and diesel prices, home foreclosures of our members or any other hardships.

We opted to reach a tentative agreement on economic issues and withdrew our bargaining demands for the safety language we and the public sorely need. But let it be clear, we are not finished with our struggles for meaningful change in the health and safety arena.

Details of the tentative agreement will not be released until union members have a chance to review the pact.

The oil industry contracts, which expired Feb. 1, cover Shell, along with BP PLC, Exxon Mobil Corp., Chevron Corp., Amoco, ConocoPhillips and 38 independent refineries.

The USW represents about 30,000 workers in the oil industry. If USW locals at Shell approve the tentative agreement, it becomes the minimum standard that must be met in local union negotiations with the remaining oil companies.

Click here for a detailed explanation of oil industry bargaining from the USW.

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