Houston: With the clock running down on a pivotal labor agreement affecting tens of thousands of oil industry workers, negotiators for the United Steelworkers (USW) union and Marathon Petroleum Corporation continued intensive bargaining late Saturday in a bid to avoid a large-scale strike at U.S. refineries and chemical plants.
The current four-year master labor contract covering approximately 30,000 refinery and chemical plant workers represented by the USW is set to expire at 12:01 a.m. Sunday, heightening the urgency of talks that stretched well into the weekend. Marathon acts as lead negotiator on behalf of about 26 major refineries and chemical firms, including industry giants such as Exxon Mobil, Chevron and Valero Energy.
Union leaders reconvened discussions with Marathon executives on Saturday after rejecting a company proposal that would have delivered an overall 13 % wage increase over four years structured as 3 % raises in each of the first two years and 3.5 % hikes in the final years of the contract. The offer, while noteworthy in nominal terms, fell short of union expectations, especially in meeting broader worker demands.
Key areas of contention remain far beyond base pay rates. The USW is pushing for robust cost-of-living adjustments, stronger healthcare protections, enhanced safety protocols, and formal rules governing the use of artificial intelligence (AI) in plant operations a highly controversial element that labor representatives say could impact jobs and working conditions if left unregulated.
Union negotiators argue that despite refinery operators often earning around $50 an hour after probation, rising inflation, elevated living costs and technological changes in the industry justify more aggressive wage and benefit improvements. Marathon, by contrast, is perceived by union sources as reluctant to materially increase economic concessions or meaningfully address safety and AI oversight in its offers.
While the contract is expiring, a strike is not automatic at the moment of expiration. In previous negotiations, the USW has utilized rolling 24-hour extensions to keep talks alive in hopes of securing a deal without disrupting refinery operations. Workers will only initiate walkouts where and when the union authorizes them.
The last significant nationwide refinery strike in 2015 saw about 5,200 workers walk off jobs at 11 facilities across the country, illustrating the industry’s vulnerability to labor actions amid tight profit margins and critical production roles.
Some localized issues have already seen resolution. For example, workers at Marathon’s largest facility, the 631,000 barrel-per-day Galveston Bay Refinery near Houston, reached agreements on specific workplace matters late Friday, suggesting that progress is possible even as national pattern negotiations confront major hurdles.
However, other USW members continue to resist Marathon’s offers, asserting that the compensation and benefit proposals fail to meet the union’s policy standards and do not adequately protect workers against the increasing influence of automation and AI in plant functions.
The stakes of this labor dispute go beyond worker pay. U.S. refineries are central to the nation’s energy infrastructure, processing the majority of crude into gasoline, diesel and jet fuel. A widespread strike could ripple through fuel markets, potentially tightening supply and putting upward pressure on prices at a time when global energy markets are already sensitive to geopolitical and economic shifts.
Both sides have publicly maintained a commitment to continued bargaining, even as time pressures and internal union dynamics add complexity to an already fraught negotiation. Whether a collective breakthrough can be achieved before Monday remains uncertain, with industry analysts and labor advocates alike watching closely.