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United Steelworkers union proposes next refinery worker contracts

Mike Smith, the chair of national oil negotiations for the union, told a meeting of more than 300 United Steelworkers union workers in Pittsburgh that they had approved proposals for labor negotiation with energy companies to begin in early 2026.

The current contract, which covers 30,000 workers for four years, expires just after midnight on February 1, 2026. USW members are employed at refineries which account for more than half of the nation's crude oil processing capacity.

USW negotiators, led by Smith, and including International Vice President Roxanne Bron and International President David McCall will begin meetings with Marathon Petroleum negotiators in January.

As the leading company in the national pattern negotiations, MPC is looking forward to productive negotiation with the USW. It is also committed to working towards a mutually satisfying agreement," said Marathon's spokesperson Jamal Kheiry.

The main issue is wage increases, especially for workers in refineries and chemical plants who earn an average of more than $50 per hour.

Smith stated, "I'd say that the wage proposals are important for the times we live in." Smith declined to provide more details about the union's proposed wage increases.

Smith also said that the cost of healthcare is a major concern.

He said, "We are trying to ensure good health care without having to bear the brunt of rising cost."

As with other industries, the union also has a proposal for artificial intelligence.

Smith stated that the AI proposal was to protect our industry as we tried to understand its impacts.

In order to bring the proposals to the table, a supermajority must be reached by local unions within 45 days.

Smith said that he couldn't predict at this time how easy or difficult the negotiations with Marathon might be.

He said, "It's early." No bargaining session can be easy or simple. "Our members are willing to do whatever it takes to get a contract that is fair for all of our members."

The USW achieved a wage increase of 2.5% in 2022. This was followed by 3% increases in the second and third year and a 3.5% raise in the fourth. (Reporting and editing by Leslie Adler; Erwin Seba)

(source: Reuters)