HOUSTON, TX - It’s been 35 years since the last strike at chemical oil refiners and facilities on U.S. soil, but that streak is now over. This latest strike is now affecting the production of up to 10% of U.S. fuel, and if it continues it could affect the low gas prices drivers have been enjoying, according to NPR.
“First and foremost, the industry walked away from the table; that led to the strike quicker than anything,” Lee Medley, President of United Steelworkers Local 13-1 told NPR. “Its hard for us to vote something when they walk away from the table.”
Negotiations are expected to resume today between Shell and local union leaders as they debate over new wage contracts for striking U.S. refinery workers, Shell told Reuters.
The two camps have been halted on negotiations since the United Steelworkers union called walkouts early on Sunday at nine plants. Most affected refineries are running at near normal capacities, with Shell having to call on trained managers, retirees, and others from non-union plants to replace workers.
Talks have been difficult, as a drop of more than 50% in oil prices since June has chipped away at profits of major companies, prompting executives to halt wages for workers, according to Reuters.
The union claims talks late on Tuesday made "no progress,” while Shell called them "productive." Since bargaining first started on January 21st, the union has rejected a total of five offers from Shell.
The union seeks an annual pay increase of 6%, double the size of those in the last agreement. It also wants work that has been given in the past to non-union contractors to start going to USW members, a tighter policy to prevent workplace fatigue and reductions in members' out-of-pocket payments for healthcare.
“Inventories are sky high, there’s actually plenty of cushion for the industry to be able to absorb any shortage in production,” Kenneth Medlock Senior Director for the Center of Energy Studies at Rice University told NPR.
If the 2 sides cannot reach an agreement, the fear is that strikes could spread to other union sites. After 8 to 10 weeks, inventories could start to run down, and therefore, affect gas prices, according to NPR. As for now, we are not yet sure how this will affect transportation costs in the produce industry, but because most of us drive cars every day, this is definitely a story we'll be keeping an eye on!
