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UPDATE 1-Union, Shell to resume talks in U.S. refinery strike on March 4

Sat, 28th Feb 2015 02:07

(Recasts with USW message)

HOUSTON, Feb 27 (Reuters) - Negotiations to settle thelargest U.S. refinery strike are set to resume on March 4, theunion and lead oil company negotiator said on Friday, the 27thday of the work stoppage.

Talks between Shell Oil Co, the U.S. arm of Royal DutchShell Plc and the United Steelworkers union (USW) brokeoff on Feb. 20 after refinery owners balked at a settlement. Theunion then ordered a strike by workers at three MotivaEnterprises refineries, including the nation'slargest, all co-owned by Shell.

A total of 6,550 workers are walking picket lines at 15plants, including 12 refineries that account for one-fifth ofU.S. domestic production capacity.

"Industry needs to bargain a fair and safe contract or seethe strike expand," the USW said on Friday.

It was unclear whether the negotiators for both sides wouldmeet face-to-face or communicate via a conference call or othermeans.

"We can confirm that Shell and USW have agreed to speak nextWednesday as both parties continue efforts to reach a mutuallysatisfactory agreement," said Shell spokesman Ray Fisher. "Nofurther details are available."

The USW has said it is seeking to retain safety provisionsfrom previous contracts and tighten fatigue standards forworkers, as well as win back daily maintenance jobs now done bynon-union contractors.

Shell and other companies have said the strike came aboutbecause of the union's insistence on replacing the non-unioncontractors with USW members, which would impair management'sflexibility in refinery staffing.

Companies have called on temporary replacement workers tokeep plants running at nearly normal levels.

Only one refinery, Tesoro Corp's 166,000-barrel-per-day (bpd) Martinez, California, plant wasshut due in part to the strike.

The Martinez refinery was due to undergo a multi-unitoverhaul closing down half its production prior to the strike.Tesoro decided to shut the entire refinery but has said it wouldresume production once the overhaul is completed. (Reporting by Erwin Seba; Editing by G Crosse and Ken Wills)

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