By Erwin Seba

HOUSTON, Reuters – On Thursday, Negotiators from the United Steelworkers union (NYSE:) and Marathon Petroleum Corp (NYSE :), who represent oil refiners as well as chemical manufacturers, will begin negotiations to create a contract that covers 30,000 American workers.

As oil demand is nearing 2019 levels, the talks take place at a time when it has been nearly back to normal since before the outbreak of coronavirus. This decline in demand led to refineries stopping operations. The U.S. will consume more petroleum products and liquid fuels in 2019 than it did in 2019.

February 1. The current agreement national to bargain expires

“We’re looking forward to getting an agreement that’s good for our members who have been working hard in difficult times for the past two years,” said Mike Smith, chairman of the USW’s National Oil Bargaining Program.

Jamal Kheiry (marathon spokesperson) declined to comment.

A three-year contract would establish the pay and benefits as well as certain policies. These will then be integrated into local union and plant operator contracts.

After four years of service, USW-represented refinery workers earn about $44 per hour. This agreement provides an 8.5% raise in wages over the term of three years.

The conference was attended by USW-represented workers. It set out unspecified objectives for a pay raise, increased health insurance, and severance compensation for employees who have lost their job. These proposals were approved by the local unions this fall.

If the USW does not make sufficient progress by February 1, at 12:00 a.m., the union will send out a notice of strike. Smith stated that this is part of the routine practice of unions.

It will be the second round in negotiations after 2015’s nationwide strike which saw 7,00 workers at 12 chemical plants and 12 refineries go on strike. The strike was the first in 35 years.

The longest walkout was at Marathon’s Galveston Bay Refinery in Texas City, Texas, which lasted five and a half months.

Marathon has never been involved in negotiations to obtain oil and chemical company contracts. According to U.S. Energy Information Administration’s latest survey, Marathon has 16% of the nation’s refining capacities.

Marathon has replaced Shell (LON 🙂 Oil Co. This company had sold most of its U.S. downstream facilities or closed them down.