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Tesoro N. Dakota refinery workers OK contract

May 17, 2012:

Union workers at Tesoro Corp's 58,000 barrels-per-day Mandan, North Dakota, refinery approved a three-year contract with the company on Wednesday, according to a statement issued by Tesoro on Thursday. The agreement comes after five months of grueling talks, said Javier Montoya, president of United Steelworkers (USW) Local 10, which represents hourly workers at the refinery. "The members got a little timid after the company said its last offer was only good until May 22," Montoya said. "That might have scared some people."

Wage terms of the three-year contract were not immediately disclosed. "We are pleased with this outcome," said Tesoro spokeswoman Tina Barbee. "This is the third of our refineries to vote for ratification of our offer, including Kapolei, Hawaii, Salt Lake City." Two refineries in California and one in Washington state are scheduled to vote on the contract proposal this week and next. In early April, the Mandan USW members voted to authorize a strike if the union's leaders were unable to reach an agreement with management. Union leaders said the company wanted to be able change benefits for employees without having to negotiate with the union. Tesoro has declined to discuss the details of talks with the USW.

In the contract proposal ratified by the Mandan workers, Tesoro agreed to not make any changes to benefits before Dec 31, 2014, by which time the USW and Tesoro will be in talks for a new three-year pact.

By Reuters