By Erwin Seba
HOUSTON, Feb 28 (Reuters) - Workers at two Sunoco Inc refineries issued a formal warning on Saturday to the company that they plan to go on strike at 12:01 p.m. on Sunday (1701 GMT) if agreement on a new contract is not reached by that time.
More than 1,000 workers represented by the United Steelworkers union could walk off their jobs on Sunday at refineries in Philadelphia and Marcus Hook, Pennsylvania, if last-minute talks fail to produce a new contract.
'We're not making much progress,' USW International Vice President Gary Beevers said in a statement. 'However, there is still time for the company to avoid a costly strike and agree to accept the (national agreement) like they did at their Toledo, Ohio, refinery.'
A Sunoco representative said the company continues to negotiate.
'We plan to work very hard to reach an agreement that works for Sunoco and for the union,' said company spokesman Thomas Golembeski.
Sunoco plans to continue operating the 335,000 barrel per day (bpd) Philadelphia refinery and the 178,000 bpd Marcus Hook plant during a strike.
A work stoppage affecting 3 percent of U.S. refining capacity could continue boosting retail gasoline prices, especially in the U.S. Northeast, which have been climbing in recent weeks due to rising oil prices and refiner production cuts.
Leaders of the United Steelworkers union had warned they would launch a work stoppage if Sunoco did not offer a contract containing a long-standing no-layoff clause contained in a national agreement negotiated with U.S. refiners earlier this month.
Sunoco wants to reduce refinery unit operators by up to 100 workers without shutting any units at the refineries, according to local media reports. The company has confirmed it wants to reduce the workforce, but won't say by how much.
Sunoco is offering a severance package in its contract proposal. The contract proposal matches the 3-percent per year raise for 2009, 2010 and 2011 as well as bonus and benefits contained in the national agreement negotiated earlier this month between refiners and the USW.
Sunoco cut production at its refineries in January as the U.S. economic recession crushed demand for motor fuels.
USW officials have warned cutting staff while the refinery continues to operate at full production could lead to greater worker fatigue, increasing the risk of deadly accidents.
Sunoco has said the staffing cuts would be in line with other refineries operating safely across the country.
(Editing by Vicki Allen)
((erwin.seba@thomsonreuters.com; +1 713 210 8508; Reuters Messaging: erwin.seba.reuters.com@reuters.net)) Keywords: REFINERY STRIKE/SUNOCO (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
HOUSTON, Feb 28 (Reuters) - Workers at two Sunoco Inc refineries issued a formal warning on Saturday to the company that they plan to go on strike at 12:01 p.m. on Sunday (1701 GMT) if agreement on a new contract is not reached by that time.
More than 1,000 workers represented by the United Steelworkers union could walk off their jobs on Sunday at refineries in Philadelphia and Marcus Hook, Pennsylvania, if last-minute talks fail to produce a new contract.
'We're not making much progress,' USW International Vice President Gary Beevers said in a statement. 'However, there is still time for the company to avoid a costly strike and agree to accept the (national agreement) like they did at their Toledo, Ohio, refinery.'
A Sunoco representative said the company continues to negotiate.
'We plan to work very hard to reach an agreement that works for Sunoco and for the union,' said company spokesman Thomas Golembeski.
Sunoco plans to continue operating the 335,000 barrel per day (bpd) Philadelphia refinery and the 178,000 bpd Marcus Hook plant during a strike.
A work stoppage affecting 3 percent of U.S. refining capacity could continue boosting retail gasoline prices, especially in the U.S. Northeast, which have been climbing in recent weeks due to rising oil prices and refiner production cuts.
Leaders of the United Steelworkers union had warned they would launch a work stoppage if Sunoco did not offer a contract containing a long-standing no-layoff clause contained in a national agreement negotiated with U.S. refiners earlier this month.
Sunoco wants to reduce refinery unit operators by up to 100 workers without shutting any units at the refineries, according to local media reports. The company has confirmed it wants to reduce the workforce, but won't say by how much.
Sunoco is offering a severance package in its contract proposal. The contract proposal matches the 3-percent per year raise for 2009, 2010 and 2011 as well as bonus and benefits contained in the national agreement negotiated earlier this month between refiners and the USW.
Sunoco cut production at its refineries in January as the U.S. economic recession crushed demand for motor fuels.
USW officials have warned cutting staff while the refinery continues to operate at full production could lead to greater worker fatigue, increasing the risk of deadly accidents.
Sunoco has said the staffing cuts would be in line with other refineries operating safely across the country.
(Editing by Vicki Allen)
((erwin.seba@thomsonreuters.com; +1 713 210 8508; Reuters Messaging: erwin.seba.reuters.com@reuters.net)) Keywords: REFINERY STRIKE/SUNOCO (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.