By Erwin Seba

HOUSTON, Texas (Reuters) – The United Steelworkers union will hold meetings Thursday to discuss the next steps in negotiations for a contract that covers workers at U.S. oil refineries, chemical plants, and pipelines. This is according to a Wednesday text message sent to members by Reuters.

Marathon Petroleum Corp (NYSE) and the USW, which was leading negotiator in oil industry negotiations, reached an agreement Monday night to prolong talks on a new contract.

People familiar with the situation said that the USW had rejected Marathon’s offer for a pay increase of 9% in three years. This prompted a pause in negotiations.

On Tuesday and Wednesday, negotiators of both parties did not meet.

Marathon asked the USW Tuesday to accept Monday’s “comprehensive and final settlement”. USW International President Tom Conway stated that oil companies should recognize workers who sacrificed their lives to maintain the operation of chemical plants during the pandemic.

The extension terms stipulate that the current labor contract will remain in effect with either party having to give 24-hour notice. In 2019, the existing contract for three years was negotiated and provided an increase of 11% in pay over that period.

A strike will likely follow the same pattern as the 2015 stoppage of work, which started on February 1st and grew to 12 refineries. These plants accounted for about a fifth the oil processing capacity and were three of three chemical plants, before an agreement was reached.

According to sources, both the USW and the oil companies are prepared for possible strikes by the union. The companies also have temporary workers who can replace the strikers.

One refinery was shut down during the strike of 2015, while others reduced production to half its capacity.