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Lead contract in petroleum industry.

Amoco Oil Co. and the National Oil Bargaining Committee of the Oil, Chemical and Atomic Workers Union reached agreement on the petroleum industry's lead-off settlement that is expected to set a pattern for 26,000 other workers in the industry. The 3-year contract covers approximately 4,500 workers nationwide.

Nearly 40,000 workers in the petroleum industry are represented by the union, which negotiates approximately 300 agreements in the industry. The union bargains at the local level, but bargaining objectives for certain issues, such as wages and health benefits, are determined at the national level by the union's National Oil Bargaining Policy Committee.

At its conference last September, the union's committee set as goals a 3-year agreement providing wage increases of $1.25 an hour in the first and second years of the contract and 6.5 percent in the third year, and company contributions to the health plan equal to 90 percent of premiums. Other bargaining objectives included enhanced health and safety provisions, environmental policy, and work force training; 12 weeks unpaid parental leave for family illness or emergencies; increases in shift differentials; and an extra week of paid vacation for workers with 15 and 20 years of service.

Negotiations at the various oil companies began in December. During intermittent bargaining, the union received and rejected three contract offers because the proposals failed to meet the union's bargaining goals on wages, health care contributions, and certain other issues. The last offer from Amoco would have boosted wages by 2.5 percent in 1992, 3 percent in 1993, and 3.5 percent in 1994; raised Amoco's monthly health care contributions by $35 per employee; granted unpaid family leave; and provided safety and health training.

The pact the two parties agreed upon called for wage increases of 3.5 percent in the first and second years and 3.7 percent in the third year. The average hourly rate in the industry was $17.54 at the expiration of the previous contracts, according to the union.

Amoco agreed to contribute an amount equal to 80 percent of health insurance premiums. Other oil companies would be expected to adhere to the 80/20 contribution rate, or make increased monthly contributions of $20 per employee in the first year and $25 in the second and third years.

Other terms include a minimum 12week unpaid family leave provision for the birth or adoption of a child or the serious illness of a child, spouse, or parent; and two training sessions, up from one, for the union's safety and health representatives during the term of the agreement, with joint efforts conducting training and developing course curriculum.
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Title Annotation:Amoco Oil Co., National Oil Bargaining Committee of the Oil, Chemical and Atomic Workers Union
Author:Cimini, Michael H.; Behrmann, Susan L.
Publication:Monthly Labor Review
Date:Apr 1, 1993
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