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ExxonMobil rejects union proposals to end Texas refinery lockout

June 22/2021

MOSCOW (MRC) -- ExxonMobil has rejected proposals by the United Steelworkers union to end a seven-week lockout at the company's Beaumont, Texas, refinery, reported Reuters.

Exxon locked out about 650 union workers on May 1 after a prior labor contract expired. It cited a risk of a strike by the USW-represented employees. The plant, which makes gasoline and Mobil 1 motor oil, has continued to operate using managers and replacement staff.

A union official confirmed the two sides met for about two hours on Thursday, but declined to discuss any proposals. No date for another negotiation session has been set.

In a statement posted online, Exxon said the company and union remain far apart based on Thursday's meeting.

"The union provided five partial proposals which included items that significantly increase cost and do not meet the objectives we informed the union of in January," Exxon said.

The company also said its lead negotiator was prepared to meet with the union's lead negotiator next week.

The USW proposals were offers on specific issues the union was willing to make changes to if Exxon reciprocated on its issues, sources familiar with the matter said. The company has insisted the union call a vote on its last proposal, which was made in April. Exxon said its proposal is needed to ensure flexibility to compete in low-margin environments. The USW has refused to call a vote, saying Exxon's proposal would eliminate seniority and create two separate contracts for the refinery and lubricant plant.

As MRC informed previously, Gov. John Bel Edwards and ExxonMobil Baton Rouge Refinery Manager David Oldreive have announced the companys final investment decision for more than USD240 million in capital improvements at the ExxonMobil Baton Rouge Refinery.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, propylene, ethylene, petrochemistry, Exxon Mobil, USA.
Category:General News
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