Steelworkers Walk Off Job at Chevron Richmond Refinery

Chevron said in a statement Sunday night that it has negotiated with the union for months and believes the contract offered was fair and addressed union concerns.

If the strike shuts down the Richmond refinery, it could crimp gasoline supplies in the state, which has the highest regular gas price in the nation at $5.85 a gallon as of Monday morning, according to AAA.

The union said in its statement that it reached a pattern agreement with the oil industry Feb. 25 on wages and working conditions. But about 200 bargaining units also have to agree on local issues before contracts can be approved.

But Chevron argued that “the union’s demands exceeded what the company believes to be reasonable and moved beyond what was agreed to as part of the national pattern bargaining agreement.”

The old contract with Chevron in Richmond expired Feb. 1, and workers have been reporting to their jobs on a rolling 24-hour extension, the union said.

The company says that operations at the refinery will continue and it does not anticipate any supply chain issues. Union officials said the refinery handles up to 230,000 barrels of oil a day.

“If we were to lose all of the output from that refinery, which is over 10% of the state’s refined product production, that would be a huge hit, and it would be taking place at a time when the market is already tight in California,” UC Berkeley professor Severin Borenstein said.

San Ramon-based Chevron Corp. says on its website that the refinery produces gasoline, diesel and jet fuel, as well as lubricating oils.

Union members said they will continue to picket as they wait for an agreement.

Source: NBC Bay Area