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Union calls 1%/year pay increase offer for U.S. refinery workers ‘ridiculous’ By Reuters

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© Reuters. FILE PHOTO: A United Steelworkers flag flies outside the Local 1299 union hall in Ecorse, Michigan, U.S., September 24, 2019. REUTERS/Rebecca Cook

By Erwin Seba

HOUSTON (Reuters) -A pay raise offer of 1% a year for workers made by lead oil industry negotiator Marathon Petroleum (NYSE:) is “ridiculous,” the United Steelworkers union said in a message to members on Wednesday.

“We didn’t work from home during the pandemic. We showed up and kept our facilities running,” the union said in the message, which was seen by Reuters. The message said the offer would give 30,000 U.S. refinery and chemical plant workers a 1% pay increase for each of three years under the contract being negotiated.

Under the current contract, which expires Feb. 1, workers received pay increases of 3.5% in each of the contract’s first two years and 4% in the third and last year.

Going into talks, the union was seeking “significant” pay increases and improvements in health insurance, according to people familiar with deliberations over the summer within the USW who were not authorized to speak publicly.

Refiners and chemical producers began recovering in 2021 from large losses in 2020 when lockdowns and work-from-home policies to prevent the spread of COVID-19 drove down motor fuel demand.

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