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No talks expected this week in U.S. refinery strike - sources

Published 24/02/2015, 00:09
© Reuters. Workers from the USW union walk a picket line outside the Shell Oil Deer Park Refinery in Deer Park, Texas
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HOUSTON (Reuters) - Talks to end the largest U.S. refinery strike in 35 years are not expected to resume this week, sources familiar with the negotiations said on Monday after the number of plants hit by walkouts increased over the weekend.

Face-to-face meetings between the United Steelworkers union (USW) and lead refinery owner representative Shell Oil Co, the U.S. arm of Royal Dutch Shell Plc (L:RDSa), might remain on hold until the second week of March, the sources said.

The halt in talks comes after the USW pulled workers from three Motiva Enterprises LLC [MOTIV.UL] refineries in Louisiana and Texas co-owned by Shell after oil companies balked at a possible settlement.

Over the weekend, sources said negotiations might resume by the middle of this week.

About 6,550 workers are walking picket lines at 15 plants, including 12 refineries that account for one-fifth of U.S. refining capacity. Refiners are using trained replacement workers, primarily managers and engineers, to keep plants running close to normal.

A USW spokeswoman declined to discuss the negotiations on Monday. On Sunday, the union said its negotiators were available to meet with Shell.

A Shell spokesman said no talks have been scheduled.

"(We) look forward to resuming negotiations, whenever that may be," the Shell spokesman said.

More information might come from a news conference USW International President Leo Gerard has scheduled for Tuesday morning in Atlanta.

In a letter to employees, Shell said the major sticking point in the talks was the USW's push to shift daily maintenance work from non-union contractors to union members.

The company said it offered a 6.5 percent increase in pay to the USW over the three years of the agreement.

The union has said it is seeking to preserve previous agreements on safety and tighten rules to prevent worker fatigue, as well as win back daily maintenance jobs for union members.

Shell said using contractors gives it flexibility and prevents the layoff of union members.

Workers are also striking at the Shell refinery and chemical plant in Deer Park, Texas, and at plants in California, Indiana, Kentucky, Ohio, Texas and Washington owned by BP Plc (L:BP), Lyondell Basell NV (N:LYB), Marathon Petroleum Corp (N:MPC) and Tesoro Corp (N:TSO).

© Reuters. Workers from the USW union walk a picket line outside the Shell Oil Deer Park Refinery in Deer Park, Texas

The nation's largest refinery, Motiva's 600,250 bpd operation in Port Arthur, Texas, is running at reduced production as it attempts to restart a 60,000-bpd hydrocracking unit that produces motor fuels, primarily diesel, source said.

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