FOR IMMEDIATE RELEASE
February 6, 2009
Contact:
Lynne Baker, USW Communications, (c) 615-828-6169
National Oil Bargaining Pattern Agreement Focuses on Economic Issues
Beaumont, Texas—The tentative pattern agreement negotiated between the United Steelworkers
(USW) union and the oil sector features wage increases, a ratification bonus, continuation of the
current premium contribution structure and no retrogression on items previously settled between the
union and the industry.
“Our main focus in this round of National Oil Bargaining was health and safety, but the industry
refused to allow us to be equal partners with them in resolving the health and safety problems that
persistently are not being addressed across the whole industry,” USW International President Leo W.
Gerard said.
USW International Vice President Gary Beevers heads the National Oil Bargaining program and
negotiated with the industry. “Despite the oil companies earning over $142 billion in profits last year,
they did not think enough of their employees to negotiate meaningful health and safety language
that would have been a win-win for them,” he said.
Rather than launch a national strike over health and safety that would have hurt the American
people at a time of economic crisis, the USW withdrew its health and safety proposal and focused on
the economic package.
The recession had a dampening effect on our proposal for a more significant wage increase,”
International Vice President Gary Beevers said. “Even though the oil companies made record profits
the last few years, they used the poor economy as a shield to prevent us from receiving a higher pay
increase.”
The three-year tentative agreement offers wage increases of 3 percent each Feb. 1; a $2,500
signing bonus, which equates to $1,000 for ratification and $500 per year to help defray the cost of
out-of-pocket medical expenses; and continuation of health care coverage 80 percent paid by the
employer. This agreement also rolled in the successorship and job security letters into the no
retrogression language. Local unions that had contracts expiring Feb. 1 have until Feb. 16, 2009 to
ratify their agreements in order to receive the bonus. For all other contracts not expiring Feb. 1, the
locals have to ratify their agreements no later than 14 calendar days following the contract expiration
date in order to receive the bonus.
This tentative national agreement is a pattern for all the local union contracts covered under the
National Oil Bargaining program. It is the union’s National Oil Policy. The tentative offer is placed
before local union bargaining tables. The final offer negotiated between the local union and company
is checked to see that it contains the pattern and if it does not, it is rejected. At the conclusion of
local bargaining, the membership votes on an offer that contains the pattern and settlement of local
issues pertaining to the facility at hand.
There are 78 local union contracts that expired Feb. 1. Offers for 17 contracts have been submitted
and approved as meeting the National Oil Policy. They now go before local union membership for
ratification.
The USW represents 30,000 oil workers in the production, refining, marketing, transportation,
pipeline and petrochemical sectors of the oil industry.
The USW is the largest industrial union in North America and has 850,000 members in the U.S.,
Canada, the Caribbean and Aruba. It represents workers employed in metals, rubber, chemicals,
paper, oil refining, atomic energy and the service sector. For more information on oil bargaining and
its history, go to www.oilbargaining.org or www.usw.org.
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