Exxon, union prepare for lockout of workers
More than 600 employees could be locked out at Exxon Mobil’s refining and packaging plant in downtown Beaumont by the end of the week if labor negotiations don’t resume in the next couple of days.
Both Exxon Mobil and the United SteelWorkers have confirmed that meetings ended Friday without an agreement. The company reaffirmed that a lockout would be initiated after this coming Saturday if active negotiations weren’t resumed.
The existing labor contract requires that the union and the company must give each other 75 days’ advance notice before a strike or a lockout. The USW and ExxonMobil each provided their respective 75-days notices to each other on Feb. 15 of this year, according to both groups, which created a looming deadline for a contract to be reached.
Richard “Hoot” Landry, USW District 13 staff representative, said union leadership met with the company Monday morning to plan the possible handover of operations to the company after Saturday once workers are locked out, but the USW is still ready and willing to negotiate. “We are communicating and preparing communications to the company because the union is ready and able to do whatever is necessary to meet with them and work toward a new agreement,” Landry said.
A contract was last signed in 2015 and was set to expire at the beginning of February. Negotiations have been ongoing since January, and labor and the company have met dozens of times, according to sources familiar with the situation.
Exxon Mobil’s Beaumont refining complex has a production capacity of 369,024 barrels-per-day, and is in the middle of an expansion project that could make it the largest in North America.
Landry said the union offered its latest proposal to the company on April 20, asking to extend the current contract until February and mandating continued negotiations every week until a more permanent agreement could be reached.
In a communication to employees published Friday, the company said the offer didn’t meet expectations it had already outlined since the beginning of the year.
“After review and consideration, the company declined this proposal on Wednesday, April 21, as it does not meet any of the bargaining objectives shared with the Union over the last 3+ months,” representatives for Exxon Mobil Beaumont wrote.
Representatives for management at Exxon’s Beaumont refinery said the company has been trying to push for a longer, more stable contract that would reduce uncertainty for both management and employees.
Neither the union nor Exxon has publicly detailed specifics about their proposals, but the USW has been adamant that their goals aren’t based on securing more pay.
“These negotiations are not about wages,“USW Local 13-243 Darrell Kyle said in a statement. “Our greatest concern is making sure our lives and our jobs are safe and secure. Safety in our workplaces also protects our families and community.”
USW Local 13-243 represents about 600 workers at the refinery.
Landry said that the USW based its negotiations points on a survey answered by members, which indicated that they were most concerned with safety, job security and seniority.
He said that the union objected to proposals from the company that ran counter to those goals set by members, but leadership were and still are doing everything in their power to settle a contract without a work stoppage.
“The latest proposal was an attempt by the union to keep negotiations going, because we knew the 75-day deadline was coming up,” Landry said. “It was our position that we wanted to avoid a work stoppage, because the pandemic was hard on everyone last year —the company and our members.”
A meeting between union leaders and the company, outside of the transition planning meeting, hasn’t been set as of Monday afternoon, according to both groups.
Nakisha Burns, Beaumont area public and government affairs manager, reaffirmed the company’s good faith intentions in negotiations and the value it placed on keeping wages and benefits competitive.
The company is expected to provide further updates to employees throughout the week as the situation develops, but will keep focusing on keeping operations going in the meantime.
“We hope this situation will be resolved promptly,” Burns said in a statement to the Enterprise. “We will continue to operate to ensure a safe and reliable supply of quality products to our customers.”