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Union and Marathon meet as deadline for US refineries' strike looms

The United Steelworkers union and Marathon Petroleum continue to negotiate on Saturday. This is just hours before a possible strike deadline at several U.S. refineries or?chemical plants.

The union rejected an offer made by Marathon, who is the chief negotiator of 26 U.S. chemical and refinery companies, including Exxon Mobil and Valero Energy. According to sources who were familiar with the negotiations, the offer included a 13% wage increase over a 4-year contract.

Jamal Kheiry, Marathon's spokesperson, said that "MPC is continuing to meet with USW representatives." "We're committed to negotiating in good faith, and working towards a mutually satisfying agreement," said Marathon spokesperson Jamal Kheiry.

USW released a statement saying that "the union will continue to bargain with Marathon beyond contract expiration? for a national agreement covering all workers represented by the USW National Oil Bargaining Program".

Marathon's proposal would have seen pay increases of 3% each in the first two year and 3.5% each in the last two.

Sources said that the USW and the USW's 30,000 oil workers are negotiating over the cost of living, healthcare costs, and standards for artificial intelligence in the plants.

USW also wants to see tougher safety regulations, but sources say that this is not likely to happen at Marathon.

"Marathon, as a company, thinks that our industry is overpaid," stated one of the sources who asked to remain anonymous because they weren't authorized to speak in public. "They don't say much about economics. To be honest, our proposal is mainly about AI. They're not doing it in a positive way.

The current four-year agreement expires on Sunday at 12:01 am, but this does not automatically mean that a strike would begin at that time.

During past negotiations, the union granted rolling extensions of 24 hours to reach an agreement beyond expiration.

Only in plants where a union has authorized a strike will workers walk off the job.

The USW called out 5,200 USW workers at 11 refineries in the United States, which were part of the previous nationwide strike. The refineries continued to operate with temporary replacement employees.

Negotiations between the USW & Marathon concern a national agreement pattern that will set wages for hourly union workers as well as healthcare costs, safety agreements, and other matters.

After completing their probationary periods, inside refinery operators earn about $50 per hour.

To create the contract, you combine the national agreement with site-specific agreements.

The company and workers settled local issues at Marathon's biggest refinery on Friday, the 631,000-barrel-per-day Galveston Refinery. (Reporting and Additional Reporting by DishaMishra. Editing by Nathan Crooks, Nik Williams and Nathan Crooks)

(source: Reuters)