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Phippips 66 refinery workers reject contract, citing safety concerns

October 10/2019

MOSCOW (MRC) -- Union workers at Phillips 66s 285,000-barrel-per-day Bayway refinery in Linden, NJ, voted against a three-year contract, raising the chances of a strike or lockout at the largest petrochemical complex on the US East Coast, reported Reuters.

Some 266 of the 429 union workers who voted opposed ratifying the agreement, while 163 voted in its favor, according to a union representative from the International Brotherhood of Teamsters, Local 877.

The union intends to continue negotiations with Phillips 66 under a 24-hour rolling contract that has been in place since the previous deal expired on Sept. 30, the representative said.

If an agreement is not reached, the unionized refinery workers could be subject to a lockout, leaving the company without access to certain emergency response systems such as a fire department.

A spokesperson for Phillips 66 did not immediately respond to a request for comment.

Key provisions of the contract voted on Friday included expanding operators responsibilities to include several different operating refinery units, a provision some union members said is a safety concern.

Two sources familiar with the negotiations said that the proposed contract also included an across-the-board 11% raise for refinery workers.

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.
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, PP block copolymer, homopolymer PP, propylene, ethylene, petrochemistry, Chevron Phillips, Phillips 66, Russia, USA.
Category:General News
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