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Oil settlement.

Amoco and the Oil, Chemical and Atomic Workers (OCAW) reached a 3-year agreement, covering 4,500 workers at several of the company's facilities across the Nation. The accord sets the pattern for settlements at other major companies in the industry.

Nearly 40,000 employees in the petroleum industry are represented by OCAW in collective bargaining for some 300-350 agreements across the country. Although the union bargains at the local level, bargaining objectives for certain issues, such as wages and health benefits, are determined at the national level through the union's National Oil Bargaining policy Committee.

At its conference last year, the Oil Bargaining Policy Committee set as bargaining goals a 2-year agreement providing wage increases of $1.25 per hour in each year and company contributions to the health plan equal to 90 percent of premiums Other bargaining objectives included fully paid dental benefits; maintenance of all previous terms and conditions of employment; a $1 million death benefit for survivors of an employee killed on the job; provision for a guaranteed work force, or minimum staffing levels; use of accrued sick leave for dependent child care; provision for company paid training for Department of Transportation driving license tests; identical pay rates for a specific skilled craft job at all companies within the industry; a 50-cent increase in shift differentials for both midnight (to $1.50) and evening (to $1) shifts, and the establishment of a differential for daylight shiftwork (50 cents); and cooperation in environmental monitoring, including adding a new classification ("operator/monitor") at the highest rate paid to an operating employee.

Negotiations at the various oil companies began at the end of 1989. After intermittent bargaining, the OCAW rejected the first two offers from Amoco. The union threatened to strike, but agreed to extend the expiring contract for 24-hour periods. Amoco and the union reached an agreement immediately after the expiration of their existing contract.

The new accord provides for an 80-cent-an-hour increase in wages in the first year, a 5-percent increase in the second year, and a 4.5-percent increase in the third year. (The union estimates the average wage for refinery workers will increase $2.36 over the current rate of $15.18 per hour.) The company will increase its monthly contribution to health care insurance by $55 in the first year formerly, $200.50), $45 in the second year, and $50 in the third year for family coverage, and by $21 formerly, $78.11), $19, and $20, respectively, for single coverage. Other terms include a $250,000 death benefit for survivors of an employee killed on the job; company paid training of marketing and transportation employees who must take the Department of Transportation's driving license tests; and up to 26 weeks of leave at full pay for an absence due to occupational illness or injury, and an additional 26 weeks at half pay. The union and company were, however, unable to agree on environmental monitoring. *
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Title Annotation:Amoco, Oil, Chemical and Atomic Workers International Union agreement
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Apr 1, 1990
Previous Article:Employment cost index rebased to June 1989.
Next Article:Boeing settlement.

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