NATIONAL OIL
BARGAINING:
ARCHIVES
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SECTION 1:
SHELL AND USW
NEGOTIATIONS
Contents
6
Our commitment to the safe delivery of energy
7
Our commitment to competitive pay
8
Our commitment to competitive health care coverage
9
Our commitment to diversity and inclusion
10
Our commitment to workforce development
Foward to Section 2: Updates & Information
Our commitment to the safe delivery of energy
Protecting the health and safety of our workers, our contractors and our neighbors is a
top priority for all of our operations.
„„ A
culture of achieving Goal Zero with no harm and no leaks is good business for Shell and the safe
delivery of energy. Shell’s aim is to deliver business performance with a focus on Goal Zero, not at the
expense of Goal Zero.
„„ Goal
Zero is important because it goes back to the heart of a fundamental value at Shell, which is respect
for people.
„„ Shell
is committed to operating in a safe and responsible manner while minimizing our impact on the
environment. Protecting the health and safety of our workers, our contractors and our neighbors is a top
priority for all of our operations.
„„ Training
and development is a key part of Shell’s comprehensive approach to managing safety at our
manufacturing sites. All employees are required to complete and stay current on required training. Further,
Shell has an expectation that contracting companies who may be working at our facilities have safety
standards that meet or exceed Shell’s safety standards.
Fast Facts
„„ When
it comes to worker safety, the refining industry injury rate has been improving. According to Bureau
of Labor Statistics data, a refinery employee is up to five times less likely to be injured on the job than
employees in other manufacturing sectors. The injury rate has steadily decreased – including a decline of
40 percent since 2003 for job-related injuries and illnesses.
„„ The
number of API process safety incidents at Shell represented U.S. Downstream Manufacturing facilities
were reduced by 50% between 2009 and 2013.
„„ Globally,
the manufacturing recordable injury case frequency at Shell has fallen by 42% between 2006
and 2013.
6 | Section 1: Shell and USW Negotiations
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Our commitment to competitive pay
Shell is committed to providing competitive pay and benefits to our employees in an
environment where people want to grow, develop and provide for their families.
„„ Shell
values the contributions of all our employees as essential partners in our mission to provide
competitively priced energy products in environmentally and socially responsible ways.
„„ We
remain committed to providing competitive pay and benefits to our employees in an environment where
people want to grow, develop and provide for their families.
„„ The
company provides a total compensation package intended to attract and retain high caliber
employees. This package includes highly competitive wages and bonus opportunity tied to our business
performance.
„„ The
total compensation package for our petroleum employees continues to be in a leadership position
compared to other major industries, according to data from the U.S. Bureau of Labor Statistics.
7 | Section 1: Shell and USW Negotiations
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Our commitment to competitive health care
coverage
Shell is committed to maintaining a competitive health care coverage for employees
that promotes and rewards employee/family wellness and prevention.
„„ Shell
offers a total compensation package intended to attract and retain high caliber employees. This
includes health care plans that provide employees and their families with comprehensive health benefits that
are competitive within the oil and gas industry.
„„ Shell
and its employees have a history of shared responsibility toward the cost of health care. The
Company subsidizes 80% of the premium cost for both employees and eligible dependents. Employees
contribute 20% of the premium cost for themselves and their enrolled family members. Cost sharing
arrangements across large U.S. based companies outside our industry typically require a larger employee
cost share for family health care.
„„ Shell
is committed to maintaining a competitive health care coverage for employees that promotes and
rewards employee/family wellness and prevention.
„„ In
accordance with the 2010 Health Care Reform Act (the Patient Protection and Affordable Health Care
Act), Shell has updated our medical program to ensure compliance with all aspects of the law. Shell
will continue to monitor emerging regulations that impact benefit plans and we will make the necessary
changes to ensure continued compliance and a competitive position.
„„ It
will take time to understand the long term implications and opportunities arising from the Affordable Care
Act. Shell will continue to monitor the emerging health care market and evaluate viable alternatives to
remain in a competitive position within our industry.
8 | Section 1: Shell and USW Negotiations
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Our commitment to diversity and inclusion
Having a diverse workforce is the only way we can accomplish our
company objectives.
„„ At
Shell, working to promote inclusion is not merely a human resources initiative. It is at the very core of
how we do business.
„„ We
embed diversity and inclusion in our culture, through our core values of honesty, integrity and respect
for people.
„„ We
embrace our differences, and rely on differing perspectives to achieve business objectives.
„„ Shell’s
success depends on our ability to attract, motivate, and retain a diverse workforce.
„„ Through
active recruitment efforts, Shell is succeeding in creating an ever more diverse workplace.
Fast Facts
„„ Shell
in the US has been recognized for achieving a 100 per cent rating in the Corporate Equality Index
(CEI), demonstrating our continued commitment to maintaining a fair and equal workplace.
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Our commitment to workforce development
Shell recognizes that a skilled workforce is essential for safe, productive and
sustainable maintenance activities at our facilities.
„„ At
Shell, we are focused on addressing the workforce needs of our industry and supporting students to
consider science, technology and engineering careers.
„„ We
promote workforce development by building the pipeline to provide access to qualified and diverse
talent.
„„ By
investing Shell’s resources in strategic programs, outreach activities and partnerships, we accomplish
Shell’s objectives and address community needs.
„„ Shell
recognizes the impact of the emerging national shortage of skilled employees in the US, and we
recognize our responsibility in recruiting and developing the next generation of skilled employees.
„„ Shell
will continue to participate and invest in workforce development initiatives such as ABC Training
programs, Community Colleges, Vo-Tech Programs and High School Trade Programs.
Fast Facts
„„ Shell’s
Workforce Development Initiative (WDI) was initiated in 2004 by the US senior leadership team as
a proactive approach to address the “great crew change” and shortage of technical talent graduating as
engineers, and process technicians.
„„ Our
WDI is viewed both internally/externally as an integral partner and leader in building a diverse skilled
talent pipeline.
10 | Section 1: Shell and USW Negotiations
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SECTION 2:
UPDATES &
INFORMATION
Contents
14
02/01/2015 Update #1: Statement on Expiration of Labor Contract with USW
15
02/01/2015 Update #2: Note to Deer Park Employees from General Manager
16
02/03/2015 Update #3: Shell and USW bargaining status
17
02/03/2015 Update #4: Shell and USW bargaining status
18
02/04/2015 Glossary of terms
19
02/05/2015 Update #5: Negotiations Continued Thursday
20
02/06/2015 Shell and USW 2015 Oil Bargaining - Just The Facts
21
02/08/2015 Shell looks forward to resuming negotiations with USW
22
02/09/2015 Shell Staffing and Operational Contingency Plan
23
02/09/2015 Refining Industry Safety Statistics
24
02/09/2015 Shell continues negotiations with the USW, focus on safety of operations
25
02/10/2015 Worker Safety in the Petrochemical Industry
26
02/10/2015 USW makes extensive information request regarding Shell business practices
27
02/11/2015 Shell and Industry’s Commitment to Safety
28
02/11/2015 Fatigue Prevention Guidelines
29
02/11/2015 Shell Deer Park refinery continues to operate safely at planned production rates
30
02/11/2015 Shell works to gather extensive information requested by USW
31 02/12/2015 Shell Deer Park refinery remains focused on safety and continues to operate as
part of the normal course of business
32
02/13/2015 Face-to-face negotiations to resume next week with USW
33
02/17/2015 Shell looks forward to resuming discussion with USW
34
02/18/2015 Shell resumed negotiations with USW today
35
02/19/2015 Shell continues to work toward mutually satisfactory agreement with USW
36
02/19/2015 Frequently Asked Questions about the USW strike and negotiations
39
02/20/2015 Negotiations continue today
40
02/20/2015 No agreement reached today
41
02/21/2015 Shell extremely disappointed with new USW strike notices
42
02/21/2015 Current status of the negotiations as provided to employees on February 21, 2015
44
02/23/2015 Shell remains committed to continued safe operations and productive negotiations
45
02/21/2015 Shell and USW 2015 Oil Bargaining - Just The Facts: Update
46
02/27/2015 Shell shares reminder of what’s at stake in 2015 labor negotiations
49
03/02/2015 VP letter to staff: Shell moves to business as usual despite USW strike
50
03/02/2015 Shell reaches a 4-year agreement with the USW
Back to Section 1: Shell and USW Negotiations
Update #1: Statement on Expiration of Labor
Contract with USW
02/01/2015
Shell and USW have agreed to extend the existing labor contract for at least the next
24 hours while negotiations continue to reach a mutually satisfactory agreement.
However, Shell has learned that the USW has given notice to its members at the Shell Deer Park site to begin
a strike at 12:01 on February 1, 2015.
That site has activated its strike contingency plan to continue operations in the normal course of business.
Remaining Shell and Motiva sites involved in the contract negotiations (Norco, Convent and Martinez) have
received rolling 24 hour extension agreements.
We remain committed to resolving our differences with USW at the negotiating table to reach a mutually
satisfactory agreement.
FAQs
What are the outstanding issues?
As a matter of company practice, we do not comment on details of pending or ongoing labor negotiations.
When will negotiations with USW resume?
Shell and USW have agreed to extend the existing labor contract for a rolling 24 hour period at our Norco,
Convent and Martinez sites. We remain committed to resolving our differences with USW at the negotiating
table and hope to resume negotiations as early as possible.
How long do you expect an employee strike to last at Deer Park site?
We are unable to speculate. Negotiations continue and our intent is to reach a mutually satisfactory
agreement.
Who will replace the striking employees at Deer Park site? Are they properly trained?
Shell has trained and qualified replacement operators as part of our contingency plan. The replacement
operators are primarily Shell employees and the vast majority come from within the site.
Are you concerned that workers at your other sites may also decide to strike?
It would not be appropriate to speculate.
14 | Section 2: Updates & Information
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Update #2: Note to Deer Park Employees from
General Manager
02/01/2015
As you know, USW represented employees at our site were given notice to begin
a strike at 12:01 a.m. on February 1, 2015, due to Shell not reaching a mutually
satisfactory agreement with the USW at the national level prior to contract expiration.
To be frank, we did not expect the USW to give strike notice to our site as we successfully reached a tentative
agreement in our local negotiations in July, in record time, with extreme cooperation. However, we had
prepared for this possibility and activated our strike contingency plan to continue safe and reliable operations
as part of normal business.
In the meantime, we remain committed to resolving our differences with the USW and hope to resume
negotiations as early as possible to get our employees back to work.
I want to recognize and thank all employees that conducted the handover in a safe, respectful and
professional manner. It was greatly appreciated and noticed. It is amazing to experience the incredible
ownership and caring you all have for our ship and each other!
To our USW represented employees – please be assured that we care about you and your families. You make
a difference in the site journey - we are One Site, One Team, and we look forward to having everyone back
here on site. More information will be published on the external Shell Deer Park website (http://www.shell.
us/deerpark) as it becomes available.
To our folks on site – our top priorities are safe and stable operations, so that when our colleagues return, they
come back to a site in the same condition as which it was handed over.
Thanks for your commitment to our journey. Remember, WE ARE DEER PARK. We hope to be moving forward
all together soon.
Barry Klein, Shell Deer Park Site General Manager
15 | Section 2: Updates & Information
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Update #3: Shell and USW bargaining status
02/03/2015
Contract with United Steelworkers union in the U.S. expires as negotiations continue;
Shell Deer Park represented employees on strike
This past weekend, the United Steelworkers (USW) union in the U.S. rejected a fifth bargaining agreement
proposed by the Shell bargaining team, who are leading negotiation efforts aimed at an industry-wide pattern
agreement with the USW.
This led to a strike at several industry facilities, including Shell Deer Park in Texas. USW-represented
employees at the majority of Shell and Motiva sites in the U.S. are continuing to work via rolling contract
extensions while discussions continue.
In a public statement, Shell said, “Our local relationship is strong and we will continue efforts to foster the
cooperation at our site to operate safely.”
“We regret that we were unable to reach a mutually satisfactory agreement with USW prior to contract
expiration. We remain committed to resolving the remaining issues and are confident that we can do so.
While there are areas where Shell and the USW have common interests, it’s unfortunate that the union has
chosen to use a strike as a means to resolve areas where we differ.”
One of the issues on the table is the company’s right to staff operations according to business needs. Shell is
committed to operating in a safe and responsible manner while minimizing impact on the environment.
The company statement continued, “Protecting the health and safety of our workers, our contractors and our
neighbors is a top priority for all of our operations.”
“We remain committed to providing competitive pay and benefits to our employees in an environment where
people want to grow, develop and provide for their families. Shell would prefer to reach lasting agreements
to allow our manufacturing sites to operate safely, serve the community and maintain a positive relationship
with the union and our workforce.”
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Update #4: Shell and USW bargaining status
02/03/2015
The dialogue continues with representatives from Shell and the USW to further contract
negotiations. Shell continues to be committed to resolving the remaining issues in order
to arrive at a mutually satisfactory agreement.
Shell is the lead company in a process called national pattern bargaining, under which Shell negotiates with
the United Steelworkers (USW) regarding issues that affect the Company on a national level. If Shell and
the USW reach an agreement regarding those national terms, that agreement is used as a pattern within the
industry.
The existing National Oil Bargaining (NOB) agreement with the USW expired Sunday, February 1, 2015,
at 12:01 a.m. Shell has been negotiating with USW representatives with the intent of reaching a mutually
acceptable agreement. Regrettably, no agreement was reached before the expiration deadline.
USW called for a strike at a total of nine manufacturing sites nationwide, including the Shell Deer Park
Complex. All other Shell sites affected by the negotiations are under a rolling 24-hour extension.
Agreements at the local level have been reached at Shell Deer Park Complex, Motiva Norco Refinery, Shell
Norco Chemical, Motiva Convent Refinery, and Motiva Port Arthur Refinery. Shell Martinez Refinery continues
discussions.
A strike contingency plan has been activated at Shell Deer Park, and we have fully trained and qualified
employees that are operating the plant. Our goal is to continue safe operations as part of the normal course
of business and provide quality products to our customers.
Shell and Motiva respect our workers’ rights to express themselves in a manner that is legal and safe for
themselves and for others. Our focus is on reaching a mutually satisfactory agreement with USW that pays our
workers a competitive wage, provides comprehensive healthcare coverage, and promotes a safe and healthy
work environment for our employees.
The dialogue continues with representatives from Shell and the USW to further contract negotiations. Shell
continues to be committed to resolving the remaining issues in order to arrive at a mutually satisfactory
agreement. We appreciate the USW keeping our employees working by using rolling extensions at the
majority of our sites as we continue discussions.
Fast Facts
„„ Shell
and/or Motiva owns/operates nine (9) U.S. manufacturing sites of which seven (7) of those sites
have employees who are represented by the USW.
„„ There
are approximately 3300 union-represented employees across Shell/Motiva Manufacturing sites. Of
these employees approximately 95% are USW-represented.
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Glossary of terms
02/04/2015
Glossary of terms relating to the National Oil Bargaining Between Shell and USW
Update.
Bargaining in Good Faith
A characteristic of collective bargaining that is required of labor and management by the National Labor
Relations Act. This has been interpreted to occur when the employer and the representative of the employee
meet at reasonable times and exhibit both give and take.
Collective Bargaining
A method of determining conditions of employment resulting from negotiations between an employer and a
union. The results are set forth in a collective bargaining agreement.
Collective Bargaining Agreement
A written agreement or contract that comes from negotiations between an employer and a union. The
collective bargaining agreement sets out the conditions of employment such as wages, hours, fringe benefits
and ways to settle disputes arising during the term of the contract. Collective bargaining agreements usually
run for a set period of time, such as one, two or three years.
Impasse
The term impasse is the inability of the parties to agree to terms when bargaining. Impasse occurs in labormanagement negotiations when a union and employer determine their differences are irreconcilable.
Mandatory Subjects of Bargaining
Under the National Labor Relations Act, mandatory subjects of bargaining include any topic that falls under
the category of wages, hour, and working conditions. Mandatory subjects of bargaining may be bargained
to impasse.
National Labor Relations Act (NLRA)
Federal legislation passed in 1935 that became the basic law governing private sector collecting bargaining
and unions in the United States. The purpose of the act is to promote the orderly and peaceful recognition
of unions and the use of collective bargaining as a means for establishing the terms and conditions of
employment.
Negotiating Committee
Members of the union and employer who are selected to negotiate a collective bargaining agreement.
Ratification
Formal approval of a newly negotiated agreement by a vote of union members.
18 | Section 2: Updates & Information
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Update #5: Negotiations Continued Thursday
02/05/2015
Negotiations continued Thursday and Shell and USW have recessed and agreed to
resume talks.
Shell’s primary focus is for the safety and health of its workers, community and the environment. At this time,
we continue to implement our contingency plans utilizing fully trained and qualified employees to operate in a
safe and responsible manner.
We remain committed to reaching a mutually satisfactory agreement.
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Shell and USW 2015 Oil Bargaining - Just The
Facts
02/06/2015
Shell and USW 2015 Oil Bargaining facts in question and answer format.
http://s02.static-shell.com/content/dam/shell-new/local/country/usa/downloads/deerpark/nob-justthe-facts-feb-07-15.pdf
20 | Section 2: Updates & Information
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Shell looks forward to resuming negotiations
with USW
02/08/2015
Shell looks forward to resuming negotiations with USW on Tuesday February 10.
As part of Shell’s contingency plans, we have fully trained and qualified employees who continue to operate
our Deer Park plant during the strike. Our goal is to continue operations as part of the normal course of
business and provide quality products to our customers. This work can and will be done safely. We expect all
employees to work safely. Anyone working on a Shell site has the expectation to intervene and stop work until
the job is made safe.
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Shell Staffing and Operational Contingency Plan
02/09/2015
Shell has business continuity plans for events such as work stoppages. Read this
fact sheet for more information about the details of Shell’s staffing and operational
contingency plans.
Shell has had a historical practice of creating business continuity plans for our manufacturing sites. Over
the past several months, a dedicated team has developed site contingency plans to ensure continued safe
operation of our sites in the event of a work stoppage.
Our contingency plans cover several key elements including staffing plans, training, site work scheduling
employee health, and safety, site security and environmental management.
Shell’s goal is to safely continue operations as part of the normal course of business and to provide quality
products to our customers who depend upon us.
Key Facts
„„ Dedicated
cross-functional contingency planning team
„„ Contingency
„„ All
plans updated 12 months in advance of labor contract negotiations
employees must be qualified and trained to meet the same training standards of regular operators
We will continue to implement our contingency plans utilizing fully trained and qualified employees to
operate in a safe and responsible manner. Safety is the top priority for Shell. Safe operations that protect our
employees, the community, and the environment allow us to meet the current and future energy needs of our
customers.
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Refining Industry Safety Statistics
02/09/2015
Bureau of Labor Statistics’ injury/illness comparison chart illustrates Refining industry is
safer than other U.S.
http://www.afpm.org/Refinery_Safety_at_a_Glance/
BLS rates are based on a sample rather a census of the entire population and do not include contractor
injury & illnesses numbers in their calculations. The AFPM data is a census of AFPM member companies and
contains approximately 97% of the US refining capacity and includes a majority of those site’s contractor
numbers as well.
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Shell continues negotiations with the USW, focus
on safety of operations
02/09/2015
Shell resumes negotiations with the USW this today, committed to working towards a
mutually satisfactory agreement.
Shell has spent three weeks at the table with the USW’s negotiators and continues to discuss a variety of
subjects pertaining to a new labor contract. We believe in respectful and professional collective bargaining
and have put a number of potential solutions on the table.
Shell’s primary focus is for the safety and health of its workers, community and the environment. At this time,
we continue to implement our contingency plans utilizing fully trained and qualified employees to operate in a
safe and responsible manner.
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Worker Safety in the Petrochemical Industry
02/10/2015
Recordable occupational injury and illness
incidence rates.
Worker safety is a top priority in the chemical industry.
Responsible Care companies have an employee safety
record nearly six times safer than the average of the
U.S. manufacturing sector as a whole, and three times
as safe as the business of chemistry overall.
From 2009 through 2013, Responsible Care
companies averaged less than one OSHA recordable
injury or illness per 100 employees. This record-low
total recordable injury rate is lower than the retail,
agriculture, food store, and general merchandising
business sectors.
Between 2012 and 2013, the Responsible Care
employee recordable safety rate improved by three
percent.
Together, Responsible Care companies have reduced
their recordable injury and illness incidence rates by
80 percent since 1990, making significant progress
toward the goal of no accidents, injuries or harm to
human health.
Information on Decreasing Occupational Injury Rates
http://responsiblecare.americanchemistry.com/Performance-Results/Safety/Recordable-OccupationalInjury-and-Illness-Incidence-Rates-General-Merchandise-Stores.pdf
http://responsiblecare.americanchemistry.com/Performance-Results/Safety/PDF-Recordable-OccupationalInjury-and-Illness-Incidence-Rates.pdf
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USW makes extensive information request
regarding Shell business practices
02/10/2015
Negotiations resumed Tuesday between Shell and the USW. Shell is working to
provide the latest information the USW has requested.
On Saturday afternoon, the USW made an extensive information request regarding Shell’s staffing and
business practices, including a request for confidential business information. Tuesday, the parties engaged
in discussions to clarify the scope of the Union’s request; and, we are in the process of collecting relevant
information. We continue to discuss issues and negotiate with the USW in the hopes of agreeing on a
mutually satisfactory agreement.
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Shell and Industry’s Commitment to Safety
02/11/2015
Shell and the refining industry are committed to workplace and process safety as a key
value.
National Oil Bargaining
„„ Our
goal at the facility where the USW work stoppage occurred is to continue safe operations by
implementing our contingency plans utilizing trained employees to operate the facilities.
General Safety/Process Safety
„„ Shell
is committed to operating in a safe, healthy and environmentally responsible manner, while working to
meet the current and future energy needs of our country.
„„ The
number of API process safety incidents reported at Shell represented U.S. Downstream Manufacturing
facilities were reduced by 50 percent between 2009 and 2013.
„„ Globally,
the manufacturing recordable injury case frequency at Shell has fallen by 42 percent between
2006 and 2013.
„„ In
2013, alone Shell invested around $750 million in the safety and reliability of our refineries, chemical
plants and distribution facilities.
„„ Shell’s
refineries operate 24 hours a day and 7 days a week to help meet the current and future energy
need.
Industry Commitment to Safety
„„ The
refining industry is committed to workplace and process safety as a key value.
„„ According
to the Bureau of Labor Statistics data, a refinery employee is up to five times less likely to be
injured on the job than employees in other manufacturing sectors. The injury rate has steadily decreased –
including a decline of 40 percent since 2003 for job-related injuries and illnesses.
„„ The
industry has invested significant resources on process safety.
Community
„„ Shell
is committed to operating in a safe and environmentally responsible manner.
„„ Shell
strives to be a responsible and valued neighbor in the communities where it operates.
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Fatigue Prevention Guidelines
02/11/2015
Fatigue Prevention Guidelines for the Refining and Petrochemical Industries
http://www.api.org/environment-health-and-safety/process-safety/process-safety-standards/standardrp-755
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Shell Deer Park refinery continues to operate
safely at planned production rates
02/11/2015
Shell Deer Park continues to operate safely at planned production rates. Lines of
communication remain open with USW.
While not formally at the negotiating table, the lines of communication remain open. Shell remains hopeful
that both parties will reach a mutually satisfactory agreement.
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Shell works to gather extensive information
requested by USW
02/11/2015
Shell works to gather extensive information requested by USW 20 days into talks.
Lines of communication remain open. Formal negotiations were not held today as Shell continues to work
on collecting information requested by USW. Shell remains hopeful that both parties will reach a mutually
satisfactory agreement.
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Shell Deer Park refinery remains focused on
safety and continues to operate as part of the
normal course of business
02/12/2015
Shell Deer Park continues to operate safely at planned production rates. Lines of
communication remain open with USW.
Shell Deer Park continues to safely operate at planned production rates. While not formally at the negotiating
table, the lines of communication remain open. Shell remains hopeful that both parties will reach a mutually
satisfactory agreement.
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Face-to-face negotiations to resume next week
with USW
02/13/2015
Closing out week three of negotiations, Shell remains committed to safe operations and
providing quality products
We are continuing to work diligently to collect the extensive information requested by the USW and look
forward to resuming face-to-face discussions next week. As we close out the third week of negotiations with
the USW, we remain committed to maintaining safe operations as part of the normal course of business and
to providing quality products to our customers who depend upon us.
We continue to implement our contingency plans at the Shell Deer Park Site utilizing fully trained and qualified
Shell employees to operate in a safe and responsible manner.
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Shell looks forward to resuming discussion
with USW
02/17/2015
Shell looks forward to resuming discussion with USW, goal remains reaching a
mutually satisfactory agreement.
Shell expects to resume face-to-face discussions with the USW on Wednesday, Feb. 18, in hopes of reaching
a mutually satisfactory agreement. Since initiating negotiations with the USW on Jan. 21, Shell has presented
six proposals.
However, we remain committed to reaching a mutually beneficial agreement with the USW that will ensure
that our employees continue to earn wages that are among the highest in the industry, will enable the
company to maintain its position as a leader in the U.S. oil industry, and sets a standard that will keep the
U.S. oil industry competitive in the global marketplace.
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Shell resumed negotiations with USW today
02/18/2015
Shell resumed negotiations with USW today and continued to work towards reaching a
mutually satisfactory agreement.
Shell believes in respectful and professional collective bargaining.
Shell is dedicated to the safety and health of its workers. Our fully trained and qualified employees continue
to safely operate the Deer Park Refinery.
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Shell continues to work toward mutually
satisfactory agreement with USW
02/19/2015
Shell continues its dialogue with USW for the second straight day
Shell continues its dialogue with USW for the second straight day in hopes of reaching a mutually satisfactory
agreement.
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Frequently Asked Questions about the USW
strike and negotiations
02/19/2015
Learn more about the ongoing strike and negotiations with the USW.
Health and Safety
Q. What is Shell doing to address health and safety, fatigue, staffing levels, contracting out of daily
maintenance jobs and healthcare?
A. The company continues to bargain in good faith with the union regarding several issues. It is important to
note that the subject of health & safety and fatigue were addressed in the 2012 negotiations and subsequent
contract agreement. This agreement included provisions to strengthen and improve process safety and fatigue
management.
Q. Are the current negotiating issues really about safety versus wage and benefits?
A. We are negotiating several issues with the USW including wages, benefits and their concerns surrounding
safety and contract labor. One of the issues being discussed is the company’s fundamental right to staff
operations according to business needs. Shell’s need for flexibility is consistent with our commitment to safety.
Shell is committed to operating in a safe and responsible manner while minimizing our impact on the
environment. The health and safety of all employees and neighbors is a top priority for our operations.
Q. What is Shell’s position regarding provisions to prevent workers’ fatigue at refineries/chemical plants?
A. Shell is currently bargaining with the union to address the issue and we are committed to operating in a
safe and responsible manner.
Q. Does each refinery/chemical plant have required safety training programs that employees must complete
to be employed full-time?
A. Training and development is a key part of our comprehensive approach to managing safety at our
manufacturing sites. All employees are required to complete and stay current on required training. Further,
Shell has an expectation that contracting companies working at our facilities have safety requirements that
meet or exceed Shell’s safety requirements.
Wages
Q. Under the existing labor agreement, what is the average wage at Shell refineries?
A. Union represented workers earn, on average, $37 per hour, additionally, employees have the opportunity
to receive overtime and shift premiums and a comprehensive benefits package. Shell remains committed to
providing competitive pay and benefits to our employees in an environment where people can grow, develop
and provide for their families.
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Production / Supply
Q. Are the striking Shell refineries and chemical plants operating at capacity?
A. All Shell facilities are currently operating at full capacity. Our goal is to continue operations as part of the
normal course of business and provide quality products to our customers.
Q. How long can operations at the Shell Deer Park complex be sustained during the strike?
A. As part of our contingency plans, we have fully trained and qualified Shell employees operating the Shell
Deer Park complex. Our goal is to continue operations as part of the normal course of business and provide
quality products to our customers.
Q. Are Shell’s other facilities operating?
A. Shell’s other U.S. manufacturing sites have not been impacted by the strike called at the Deer Park
Complex and continue safe operations as part of the normal course of business.
Negotiations
Q. Why is Shell negotiating with the United Steelworkers (USW)?
A. Shell is the lead company in the National Oil Bargaining process. Under this process, Shell negotiates
with the USW regarding issues that affect the company on a national level (wages, term of the agreement,
etc.) If Shell and the USW reach an agreement regarding those national terms, that agreement is used as a
pattern within the industry.
Q. How does the contract and negotiation process work?
A. Under the National Labor Relations Act, Shell and the USW have a duty to bargain in good faith
regarding terms and conditions of employment.
Q. Are contracts typically extended past the expiration?
A. It is not unusual for contract extensions to be given past their expiration date.
Q. Will the “no-retrogression” language that refers to acceptance of previous agreements with the industry, be
included in the settlement?
A. With respect to the process, we will not discuss individual bargaining items.
Q. Has the use of a third-party mediator been considered?
A. We remain committed to bargaining in good faith with the union through the National Oil Bargaining
process.
Q. When can an agreement expect to be reached?
A. We are not able to speculate on the timing of when an agreement can be reached. We would prefer to
reach lasting agreements and remain committed to working through the bargaining process.
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Q. Is Shell bargaining in good faith?
A. Shell is bargaining in good faith and is committed to working through the collective bargaining process.
We regret that we have been unable to reach a mutually satisfactory agreement with the USW prior to
contract expiration; however, we are committed to resolving the remaining issues.
Q. Has Shell had unfair labor practice charges filed against them?
A. We are not aware of any unfair labor practice charges filed against Shell.
Q. Has there been an occurrence of retaliation against striking workers?
A. We respect the right of our employees to engage in protected activity; and, we have not, and would not,
retaliate against any employees who exercise that right.
Q. What is Shell’s stance on picketing and protests?
A. Shell respects the right for people to peacefully and safely picket and protest. We also remain committed
to continuing negotiations with the USW with the ultimate goal of reaching a mutual agreement for both
parties.
Q. Have other strike notices been issued at any of the company’s refineries or chemical plants?
A. At this time, we are not aware of any such action.
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Negotiations continue today
02/20/2015
Shell remains committed to reaching a mutually-satisfactory agreement
Shell continued negotiations yesterday and proposed a seventh offer to the USW. We remain committed to
the negotiations and to reaching a mutually-satisfactory agreement.
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No agreement reached today
02/20/2015
Discussions with the United Steelworkers concluded for this evening.
Discussions with the United Steelworkers concluded for this evening with no agreement in place.
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Shell extremely disappointed with new USW
strike notices
02/21/2015
We remain committed to continued safe operations and productive negotiations.
We are extremely disappointed that the USW has issued additional strike notices for Motiva Port Arthur
Refinery beginning at midnight Friday, and Motiva Convent, Motiva Norco and Shell Chemicals Norco,
beginning at midnight Saturday.
We believe this move sets the wrong tone for both parties to move forward and reach an agreement. We
remain committed to continued safe operations and productive negotiations.
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Current status of the negotiations as provided
to employees on February 21, 2015
02/21/2015
Shell offers update on current status of negotiations
Below are excerpts from an internal employee communication providing an update on the current status of the
negotiations with the United Steelworkers International Union:
One month ago, Shell Oil Company sat down at the bargaining table with a negotiating team representing
national leaders of the United Steelworkers International Union (USW). Our goals were – and still are – to
reach an agreement that respects the needs and interests of our employees and ensures the ongoing safety as
well as economic health of Shell refineries and chemical plants.
To that end, we have put seven offers on the negotiating table. The USW International Union leaders have
rejected all seven of them. In addition to striking at our Deer Park refinery, chemical plant and lab, the
USW on Friday, called for strikes at Motiva’s Port Arthur Refinery, Motiva Convent, Motiva Norco and Shell
Chemicals Norco. In total, 14 facilities across multiple industry companies are facing strikes.
As these strikes occur, we’re grateful for the strong relationships we have maintained with employees at
our sites, which was demonstrated through the care and respect given during the handover to replacement
workers thus far.
We’re extremely disappointed that the USW International Union has seemed unwilling to achieve a timely
and reasonable agreement, particularly since we have fostered strong cooperation with local members as
evidenced by the productive outcome at many local negotiating tables.
Indeed, we’re seeing little evidence that the USW’s leaders are interested in a meaningful settlement any time
in the foreseeable future. We note, also, that it is not clear that the USW International Union leaders share
our commitment to bargain respectfully at the negotiating table – preferring, instead, to misrepresent the facts
in the media. With that in mind, I’d like to share with you more information about the position we have taken
during the course of bargaining and the issues we are attempting to resolve.
The central issue standing in the way of a settlement is not safety or fatigue, nor is it even about healthcare or
wages, as the union claims. Those things are important to all of us, and it’s important to share that we have
engaged in productive negotiations regarding each of these issues.
The central issue of the USW’s national leaders is their continued demand that Shell replace routine
maintenance contractors with USW-represented employees.
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It’s unreasonable for the USW to demand that Shell agree to their position. Our established practice
of utilizing contractors supports the need for flexibility in hiring to accommodate economic cycles and
maintenance schedules. And we’re open to a variety of ways to maintain a strong roster of skilled craftsmen
available to each of our locations. But hiring flexibility is a proven way to protect our core Shell workforce
and the long-term economic viability of our business.
It is the most effective way to keep our sites running safely, efficiently and reliably. This strategy has served us
well as we have not had to conduct any layoff in decades.
Despite our disappointment, we will continue to negotiate in good faith.
These strikes are unfortunate in light of Shell’s commitment to our employees and our diligent focus on safety
and training, as well as our highly competitive compensation and benefits package.
For more information about National Oil Bargaining, please visit the Shell National Oil Bargaining website
(www.shell.us/2015nob).
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Shell remains committed to continued safe
operations and productive negotiations
02/23/2015
Negotiations with the USW concluded February 20 after the seventh offer presented by
Shell was rejected by the union.
As of today, no date has been set to resume talks. Shell looks forward to working towards reaching a mutually
satisfactory agreement.
We continue to enact our contingency plans, utilizing trained and qualified Shell employees to operate in a
safe, responsible manner. We remain committed to providing the quality products that our customers depend
upon.
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Shell and USW 2015 Oil Bargaining - Just The
Facts: Update
02/26/2015
An update to Shell and USW 2015 Oil Bargaining facts in question and answer format.
http://s04.static-shell.com/content/dam/shell-new/local/country/usa/downloads/pdf/just-the-facts-qafeb-22-update.pdf
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Shell shares reminder of what’s at stake in
2015 labor negotiations
02/27/2015
The issues explained, along with details of what Shell has offered the USW
http://s07.static-shell.com/content/dam/shell-new/local/country/usa/downloads/pdf/whats-at-stake.
pdf
One month ago, Shell negotiators sat down at the bargaining table with the United Steelworkers International
Union (USW). Our goals were—and still are—to reach an agreement that respects the needs and interests of
our employees and ensures the ongoing safety as well as economic health of Shell refineries and chemical
plants.
Shell has made seven offers to the USW, each of which has been rejected by the USW. We’re extremely
disappointed that the USW International Union has seemed unwilling to achieve a timely and reasonable
agreement.
Below you will see each of these issues explained, along with details of what Shell has offered the USW.
The central issue standing in the way of a settlement is not safety or fatigue, nor is it even about healthcare,
wages or “no retrogression” as the union claims. The central issue is the USW’s demand that Shell replace
routine maintenance contractors with USW-represented employees.
Shell’s most recent proposal covers the four key areas which have been the focus of our negotiations with the
USW and continue to be reported by the news media in terms that lack clarity and fail to represent their true
meaning: fatigue, use of contractors, healthcare and wages.
USE OF ROUTINE MAINTENANCE CONTRACTORS
The use of routine maintenance contractors is the central issue of the negotiation. The USW is demanding
Shell replace routine maintenance contractors with USW-represented employees—a demand the company
deems unreasonable.
Our established practice of utilizing contractors supports the need for flexibility in hiring to accommodate
economic cycles and maintenance schedules. We’re open to a variety of ways to maintain a strong roster of
skilled craftsmen available to each of our locations. But hiring flexibility is a proven way to protect our core
Shell workforce and the long-term economic viability of our business. We believe it is the most effective way
to keep our sites running safely,efficiently and reliably. This strategy has served us all well,as we have not had
to conduct any layoffs at our manufacturing sites in decades.
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OUR OFFER: Shell retains the flexibility to use routine maintenance contractors in our business which enables
us to operate safely and adapt to a dynamic business landscape. We have offered a willingness to jointly
discuss opportunities related to craft employee recruitment and development, and routine maintenance staffing
needs.
FATIGUE
The American Petroleum Institute (API) issued its recommended practice entitled “Fatigue Risk Management
for Personnel in the Refining and Petrochemical Industries”—known as API RP-755—in 2011. Fatigue risk
management was already a part of Shell’s safety culture—Downstream Manufacturing had developed and
implemented global manufacturing overtime guidelines in 2008.
OUR OFFER: We have proposed a workload balance assessment, along with an annual review of local
practices and the protection of lost wages in connection with mandatory rest periods within an employee’s
regular schedule.
HEALTHCARE
Healthcare refers to the health benefits that are part of Shell’s Employee Value Proposition, and only one part
of Shell’s health and wellness benefits package. Shell also offers wellness programs for employees and their
families to proactively manage their health, encourage healthy lifestyles and provide incentives that reward
prevention. Shell’s healthcare benefits remain competitive.
OUR OFFER: Shell has offered to renew its current contributions toward premiums for the Shell medical plan,
based on an employer contribution rate of 80%. Importantly, these are the same benefits Shell provides to all
of its U.S. employees.
WAGES
Wages refers to the annual increase in the hourly rates of pay for the term established by the contract currently
under negotiation. It does not reflect the wealth component that is a part of Shell’s benefits package, which
also includes a pension, a company 401K contribution, an employee stock purchase plan and annual
business performance bonuses.
At Shell refineries, union represented workers earn, on average, $37 per hour. Additionally, employees have
the opportunity to receive overtime and shift premiums and a comprehensive benefits package. Shell remains
committed to providing competitive pay and benefits to our employees in an environment where people
can grow, develop and provide for their families. The total value of Shell’s total compensation and benefits
package is in excess of $150,000.
OUR OFFER: Shell has proposed a three-year increase of 2%, 2% and 2.5%, respectively. This proposal is
slightly lower than the increase we settled in 2012, when the energy market was stable and much stronger.
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WHAT IS RETROGRESSION?
There has been some attention and misinformation about an issue called “no retrogression.”
The Union has a “no retrogression” clause as part of their National Oil Bargaining policy proposal. “No
retrogression” language refers to the practice of renewing agreements previously reached in prior rounds of
the National Oil Bargaining process. These agreements vary and have been in place for different periods of
time. Some of these agreements include job security, successorship, layoff notice, rate retention, plant closure,
health and safety clauses, pension review and health and safety.
Despite our disappointment with USW’s seeming unwillingness to achieve a timely and reasonable
agreement, Shell continues to negotiate in good faith. The seven offers we have put on the table attest to
Shell’s commitment to reaching an agreement that respects the needs and interests of our employees and
ensures the ongoing safety and economic health of our refineries and chemical plants.
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VP letter to staff: Shell moves to business as
usual despite USW strike
03/02/2015
In a letter to staff, Aamir Farid, Manufacturing Vice President, Americas, discusses
transitioning from contingency plans to business as normal operations as USW strike
continues.
When our contract with the USW expired and employees were called out on strike this past February 1, we
activated our contingency plan for Deer Park and recently activated the plan for the Norco Chemical Plant.
Similar contingency plans have been in place for all USW represented sites for well over 12 months. These
plans have been carefully developed and tested to assure that we are able to run our facilities safely and
maintain our commitments to our neighbors and customers. The strength of the plans and our employees has
been demonstrated at both Deer Park and Norco.
We are disappointed that the USW International Union seems unwilling to achieve a timely and reasonable
agreement; but, we are also determined to continue running our business – this is in the best interest of our
employees, our customers, the sites and the communities in which we operate. As the USW strike goes into its
fifth week at Deer Park and second week at Norco Chemical, I want to provide an update on what to expect
as we shift our focus from contingency to business continuity.
When USW represented workers were directed by the union to stop work at Deer Park on February 1, we
began the handover of the facility to Shell trained operators. Following procedures, we ensured everything
was operating in accordance to people and process safety protocols.
Once the handover was completed, we turned our focus to bringing in and training additional staff. These
are qualified Shell employees, all of whom receive training prior to entering the rotation. The conclusion of this
process is focused on returning our operations to a full rotation.
At Deer Park, that goal will be achieved mid-summer. By then, we expect to have trained and deployed all
required relief employees to return to full rotation. We recognize and appreciate the contribution of those
team members running our assets during this time —a key step in our business continuity plans is to have team
members return to their normal duties.
The steps we have implemented as part of our contingency and business continuity plans have allowed us to
maintain safe and reliable operations at our manufacturing sites, deliver product to our customers, grow our
business and continue to provide good jobs for our employees.
We’ll keep moving forward. We are committed to you, as well as to our communities and customers. We are
unwavering in those commitments and they remain unchanged. They will guide each and every decision and
action as we move forward—together, as one team.
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Shell reaches a 4-year agreement with the USW
03/12/2015
Shell announced today it has reached a four-year labor agreement with the United
Steelworkers (USW), the labor union that represents many of Shell’s hourly employees
in its Manufacturing sites, following 8 weeks of negotiations. Union members are set to
vote on the agreement in the coming days.
“We are glad to have found common ground and get an agreement in place. Our gratitude goes to
everyone whose effort kept our refineries and chemical plants running safely and reliably throughout these
past weeks,” stated Aamir Farid, vice president of Manufacturing.
“We know it’s been a challenging time on both sides of the picket line. Now, as teams come back together,
let’s welcome everyone back with care and respect. We will continue moving forward, together.”
Specifically, the agreement set terms for a four-year agreement commencing February 1, 2015 through
January 31, 2019.
Wages
„„ 2.5%,
3%, 3%, 3.5%
„„ Wage
increases will be effective 4/1 for the first year and 2/1 each subsequent year of the contract
Healthcare
„„ Renewal
of the 80/20 premium split arrangement
Maintenance
„„ Language
that provides opportunities for local discussion by the parties on the future supply and
development of craft workers
Fatigue Management
„„ Language
to meet semiannually to review site practices related to fatigue
No Retrogression of previous agreements relating to layoff notice, plant closure, rate retention, health and
safety, successorship and job security.
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