In a letter Shell has sent to striking employees at its Deer Park, Texas, refinery and chemical plant, a copy of which was seen by Reuters, the company said the key sticking point was non-union contractors who perform daily maintenance, which the USW would like to see replaced with union workers.
The company said it needed flexibility.
"Hiring flexibility is a proven way to protect our core Shell workforce and the long-term economic viability of our workforce," the letter said. "This strategy has served us all well, as we have not had to conduct any layoffs in decades."
The strike that began Feb. 1 was last expanded Feb. 6, when workers at BP Plc-operated refineries in Indiana and Ohio were told to begin a work stoppage the following day.
Workers were already on strike at Shell's 327,000 bpd joint-venture refinery in Deer Park since the strike began on Feb. 1.
The strike may complicate operations at the Port Arthur refinery, where two of three crude distillation units, the workhores of the refinery, are running below capacity and fuel-making units are shut for repairs or refurbishment.
Shell and the union met continuously from Wednesday through Friday following a week-long break for the company to reply to an information request and a counterproposal from the USW.
Union negotiators have rejected seven contract offers from Shell.
The USW's lead negotiator, International Vice President Gary Beevers, has told Reuters that safe staffing levels were a point of contention in the talks.
The union also wants "no retrogression" language, which preserves agreements from previous contracts.
The unions are terminally stupid. Refineries have been automating for decades as the price for automation has come down. What does that mean? There are too many workers. Thus the "no retrogression" demand. In the hopes of gains (outside contractors not allowed) they have opened themselves to losses.
Stupidity or desperation?
So how long can the strike go on? As long as the plants can be operated by managers. From what I read automation has considerably reduced the load the managers have to carry. No wonder the oil companies are in no hurry to settle. The longer the strike goes on the better their position.
On top of all that the huge snow storms have reduced winter oil demands below the normally low amounts required in winter.
Engineering is the art of making what you want from what you can get at a profit.
Look behind the curtain, Saudis need the price of oil to be higher (and all the other socialist economies propped up by nationalized oil wells. Magically, these guys go on strike. Who is holding their strings and giving them a tug, perhaps others know. Moreover, the dock strike, there are other docks and some in foreign and adjacent neighbors.
Where is Toto?
Counting the days to commercial fusion. It is not that long now.
mvanwink5 wrote:Look behind the curtain, Saudis need the price of oil to be higher (and all the other socialist economies propped up by nationalized oil wells. Magically, these guys go on strike. Who is holding their strings and giving them a tug, perhaps others know. Moreover, the dock strike, there are other docks and some in foreign and adjacent neighbors.
Where is Toto?
Yes. That occurred to me as well. But think about it. Suppose the refinery output goes down during the strike. Gasoline prices go up - demand for oil goes down.
If the Saudis did instigate this - it is a stupid move.
Suppose the dock strike is enough to put a kink in the US economy. Demand for goods goes down. Fewer dock workers needed. Idiots.
Same for the oil strike. If it kinks the US economy demand for oil goes down. More US oil available for elsewhere. Idiots.
And what also happens - demand for "right to work" goes up. Idiots.
Engineering is the art of making what you want from what you can get at a profit.
mvanwink5 wrote:Someone that also does refining and supplies oil to the refinery, like the Saudis?
They must be really hurting to take the chance of imperiling their long term goals for short term gains.
Their long term interest is the lowest price for US consumption possible - to increase demand. Fewer refinery workers is in their interest.
My guess is that their $700 billion reserve to ride out the current price drop is not really $700 bn. Given the way that place is run it might not even be $100 bn. So instead of a 2 year reserve they don't even have 6 months.
My guess is that they have their ermines packed and a fleet of private jets stored in hangars. They had a 100 year run. Not bad for a gang of crooks.
This election could be critical for them to get a Bush, Clinton, or someone who will do a deal to get rid of Fracking or start a good long war. I know the DeMarxicrats are desperate to substitute Wampom Warren for Hillary and Warren would sell the devil Amer's soul for a taste of Marxist Utopia. Anyone else could be bad news for the house of Saud.
Then there would be the efforts to get the cash back by the Revolutionary Ayatollah cleric that takes Arabia over. Or ISIL? Any chance the Bushies would stick loyally by the renegade 'royals?' Forget the Clintons!
I wonder how well the Saudi portfolio has been managed and hidden? They have a lot invested in the media judging by the media kid gloves handling of Bush.
Time will tell.
Counting the days to commercial fusion. It is not that long now.
