By Erwin Seba

HOUSTON, (Reuters) – Union and Energy Company negotiators met Tuesday but failed to reach an agreement on a new labor arrangement for 30,000 U.S. workers working at chemical plants, oil refineries and pipelines.

Marathon Petroleum (NYSE 🙂 and United Steelworkers union, (USW), avoided a possible strike Monday by agreeing on a rolling 24-hour extension to the existing contract half an hour before the strike deadline.

Both sides agreed to resume talks later in the negotiations on Tuesday. Marathon rejected Monday’s 3-year agreement, which the union called its final and best offer.

Jamal Kheiry, Marathon’s spokesperson said the deal was a “comprehensive last settlement”. Marathon, BP (NYSE 🙂 is negotiating for itself. Chevron (NYSE:), Exxon Mobil (NYSE :), Phillips 66 (NYSE :), Shell (LON :), Valero Kheiry, Tuesday’s spokesperson for the union said that “we hope the Union will reconsider our offer.”

People familiar with the situation said that at least four offers were made Monday. The last included a 9% raise in pay over the three-year contract. In a last-week message, USW members stated that the first offer was for 3% over three year.

Tom Conway, President of USW International said Tuesday that he hopes company negotiators will recognize the risk taken by USW members during the COVID-19 Pandemic.

Conway released a statement saying that USW members “were on the frontlines of the pandemic and ensuring that our country could meet its energy requirements while executives from companies were safely tucked away working at home.”

The extension terms stipulate that the current labor contract will remain in effect unless either party gives notice within 24 hours. A 3-year existing contract that was signed in 2019 provided an 11 percent pay rise over the three year period.

If there is a strike, it will most likely be in the same format as 2015’s work stoppage. It began February 1st and was expanded to include 12 refineries that account for half of all oil processing capacities and three chemical plant.