Home / Business and Economy / Oil Workers Score 15% Raise in New Pact
Oil Workers Score 15% Raise in New Pact
7 Feb
Summary
- Unionized oil workers to receive a 15% pay increase.
- A $2,500 signing bonus is included for employees.
- The four-year agreement covers 30,000 industry workers.
A new four-year national agreement has been adopted by the United Steelworkers union, impacting approximately 30,000 oil industry workers. This landmark deal, negotiated with Marathon Petroleum, mandates a 15% pay increase for hourly employees. Additionally, all USW-represented staff will receive a one-time signing bonus of $2,500.
The USW National Oil Bargaining Program policy committee, representing oil workers nationwide, officially approved the agreement on Friday. The contract details a 4% pay raise in the first and fourth years, with a 3.5% increase in the second and third years. This resolution follows earlier rejections of previous offers since negotiations commenced in late January.
Marathon Petroleum led negotiations on behalf of 26 U.S. refiners and chemical companies, including major players like Exxon Mobil and Chevron. The USW's represented plants are responsible for two-thirds of the nation's crude oil refining capacity. Union officials had consulted with local unions regarding Marathon's final offer, which aimed for a 16% overall increase, though workers had initially hoped for a 25% hike and cost-of-living adjustments.
