Reference no: EM133177497

Question: Union workers were removed from a Chevron Corp oil refinery near San Francisco hours ahead of a deadline to begin the first labor strike at the gasoline producing plant in more than 40 years.

More than 500 United Steelworkers members were bussed out of the plant Sunday evening and replaced by non-union staff. No new contract talks are planned.

The existing labor contract at the Richmond, California, refinery expired Feb. 1 and efforts since then failed to reach agreement. The union twice voted to reject the company's offers.

"The union's demands exceeded what the company believes to be reasonable and moved beyond what was agreed to as part of the national pattern bargaining agreement," Chevron spokesperson Tyler Kruzich said.

The last strike at the 245,000 barrel-per-day plant, which produces gasoline, jet fuel and diesel fuel, took place in 1980 as part of a nation-wide walkout.

Last month the USW and most U.S. refiners reached a national agreement that provides a 12% pay raise over four years to the union's about 30,000 members at U.S. oil and chemical companies.

Question 1. The USW local has asked for a 5% pay increase above that agreed last month by its peers because of the higher cost of living in the San Francisco Bay Area. It also wants the company to add staffing to reduce the 60-70 hours that union members must sometimes work, White said.

Question 2. The USW local was offered 2.5% increase over the national agreement but they are arguing for 5% and stating that their medical premiums went up by 23% last year. However, Chevron has now brought in a skeleton crew to continue major operations while the Union employees will now sit at home with no pay. If you were the Union Leader, would you have settled or would you have walked out?

The refinery employs 1,300 workers. The Union represents about 600 employees who are now on strike. That is still a major number of employees not available to work for Chevron but Chevron is not willing to re-negotiate. What is the next step for Chevron?

Question 3. As an HR Manager, if one of the union employees comes to you and says they are willing to return to work and give up their union membership, what would you tell them?