MOSCOW (MRC) -- Operations workers at Phillips 66’s 285,000 barrel-per-day Bayway refinery in Linden, New Jersey have agreed to a short contract extension ahead of a vote on a tentative three-year agreement set for Thursday and Friday, reported Reuters with reference to the company's statement.
The previous contract for the workers, members of the Teamsters Union, expired on Sept. 30.
"The Phillips 66 Bayway Refinery can confirm that we have reached a tentative contract agreement with the International Brotherhood of Teamsters, Local 877, which covers represented, hourly employees at the refinery and the Linden Terminal. A full ratification vote is to be scheduled," a Phillips 66 spokeswoman said.
Key provisions of the new contract include expanding operators’ responsibilities to include several different operating refinery units, a provision some union members say is a safety concern.
Two sources familiar with the negotiations said that the proposed contract includes an across-the-board 11% raise for refinery workers.
If an agreement is not reached, the unionized refinery workers could be subject to a lockout.
Bayway is the largest petrochemical complex on the east coast of the United States.
As MRC wrote before, US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC