Hundreds of Chevron workers in California went on strike on Monday after the company and the United Steelworkers did not reach a contract agreement.
The union said in an email that more than 500 workers at a refinery producing gasoline, diesel, jet fuel and lubricants launched an attack at 12:01 am in the city of Richmond in the San Francisco Bay Area. Workers recently opposed the contract proposal from Chevron, and the company refused to return to the negotiating table.
The refinery will continue to operate normally, Chevron said. However, if the strike shuts down the refinery, it could adversely affect California’s fuel prices, according to the American Automobile Association. California is already the highest gasoline price in the United States at $ 5.86 a gallon.
“Currently, it’s a very disappointing time because the refinery capacity is already lacking in California, so losing 1-2% of the state’s refinery capacity can lead to a significant increase in gasoline prices. There is sex, “says Severin. Professor Borenstein of the University of California, Berkeley told KTVU.
Golden State gasoline prices continue to rise, even though they have begun to fall elsewhere in the United States. Lawmakers are asking all taxpayers for a $ 400 refund to help ease the high-priced burden of pumps.
Chevron, based in San Ramon, California, said he did not expect the strike to cause supply chain problems and told KTVU that he would bring trained workers in place of the workers on strike. ..
In a statement on Sunday, Chevron said he had been negotiating with the union for several months and believed that the contract he had offered was fair and addressed union concerns.
The union said it had negotiated a national agreement for oil workers on wages and working conditions, but about 200 individual negotiation units still had to negotiate on regional issues.
BK White, head of USW Local 5, said he had worked for the company for 29 years, but Chevron was unable to cope with worker fatigue and staff shortages.
“If we have more people and we can get better wages, perhaps our members will not feel obliged to work 70 hours a week and earn income. I don’t think it’s safe.” Said Mr White.
“The union’s demands went beyond what the company believed to be rational and beyond what was agreed as part of a national pattern negotiation agreement,” Chevron said in Richmond.
Richmond’s old contract with Chevron expired on February 1, and workers had reported to their work with a 24-hour rolling extension, the union said.
The company proposed a 2.5% salary increase, but the union demanded 5% to catch up with inflation and living expenses in the Bay Area, White said.
“It was a big deal for blue-collar workers in the Bay Area. We requested a 5% bump to help with Kaiser’s medical care, which increased by 23% last year,” White said. ..
According to White, the company has brought in about 100 alternative workers who are no longer trained to run the factory.
“This has a negative impact on the city of Richmond and the environment,” he said.
The company said it brought in a qualified replacement from Sunday night shift.
“Employees operating a refinery during a strike meet the requirements required to perform a designated job (including receiving on-the-job training from experienced employees / operators). This will ensure that the refinery operates safely and in compliance with all applicable matters. “The law,” Chevron spokesman Tyler Kluzić said in an email.
If a strike closes a refinery, it can negatively impact California’s gasoline prices. This is the highest regular gasoline price in the country at $ 5.86 per gallon, according to the American Automobile Association.
However, Ken Medlock, director of the Energy Research Center at Rice University’s Baker Institute, said it is highly unlikely that a strike would cause Chevron to shut down or raise prices.
“Until the labor contract issue is resolved, the refinery is likely to be run by a skeleton crew,” Medlock said in an email.
“California’s prices are already higher than in other states due to the unique blend that must be sold in states that limit arbitrage of imported gasoline from other regions, so it’s enough to keep the refinery up and running. There are incentives, “he added.
Richmond’s old contract with Chevron expired on February 1, and workers had reported to their work with a 24-hour rolling extension, the union said.
Chevron, based in San Ramon, California, said on its website that the refinery employs 1,300 workers. According to White, the union represents about 600 employees, including machinists, plumbers, inspection engineers and warehouse workers.
The refinery is one of the largest refineries in the state, processing approximately 240,000 barrels of crude oil per day to produce gasoline, diesel, jet fuel and lubricants, which are primarily sold in California. increase.
“We are ready to continue normal operations,” Chevron said in a statement, despite the strike.
“We expect it to be okay to maintain a reliable supply of products to the market,” he said.