HOUSTON - The United Steelworkers Union said on Saturday it would extend by 24 hours talks for a new labor contract for U.S. refinery workers, delaying a possible strike that could affect over half of U.S. refining capacity.
"Sufficient progress has been made in our deliberations today to warrant a rolling 24-hour extension at all locations," USW spokeswoman Lynne Baker said in a statement. "Discussions are continuing."
A spokesman for lead refiner negotiator Shell Oil Co said the company expected a successful conclusion to the talks.
"Shell is committed to resolving the remaining issues at the negotiating table," said Shell spokesman Stan Mays. "We are optimistic that a mutually satisfactory agreement can be reached with the USW."
The existing three-year contract was set to expire on Sunday morning shortly after midnight. After that, as many as 24,000 workers at U.S. refineries, chemical plants and pipelines could have begun walking off their jobs.
Union and industry negotiators meeting in Austin, Texas, must now reach a deal on Sunday or face a possible strike.
U.S. pump prices rose this week on fears the strike would crimp supply, and prices could go higher if work stoppages have a major impact on the 50 percent of U.S. oil refining capacity operated by unionized workers.
But a worsening U.S. recession has smothered demand for gasoline and other refined products, and U.S. fuel stocks are plentiful.
A rolling extension means further extensions are possible as long as talks are progressing to the satisfaction of union negotiators.
Negotiators, who met through the day on Saturday, will resume negotiations on Sunday morning facing a deadline of 12:01 a.m. on Monday.
If a strike occurs, nearly 10 percent of U.S. refining capacity would stop production within days as leading refiners Valero and BP Plc have pledged to idle some of their refineries in a work stoppage.
Other big refiners like Shell and Exxon Mobil Corp say they plan to use replacement workers to keep their facilities churning out gasoline and other refined products should union workers strike.
The last nationwide strike by refinery workers was in 1980 and lasted about three months.
A local union official familiar with negotiations said the sticking point appeared to be the USW's push for stronger worker safety provisions in the new contract.
"It all comes down to safety," the official said. "It's not about money."
This round of talks is the first since the deadly 2005 explosion at BP's giant Texas City, Texas, refinery, which killed 15 workers. Union officials have promised their members worker safety would be a key feature of negotiations for a new contract.
At plants like those BP and Valero plan to shut, union workers would stay on the job until units were safely put on standby or turned off.
"Sufficient progress has been made in our deliberations today to warrant a rolling 24-hour extension at all locations," USW spokeswoman Lynne Baker said in a statement. "Discussions are continuing."
A spokesman for lead refiner negotiator Shell Oil Co said the company expected a successful conclusion to the talks.
"Shell is committed to resolving the remaining issues at the negotiating table," said Shell spokesman Stan Mays. "We are optimistic that a mutually satisfactory agreement can be reached with the USW."
The existing three-year contract was set to expire on Sunday morning shortly after midnight. After that, as many as 24,000 workers at U.S. refineries, chemical plants and pipelines could have begun walking off their jobs.
Union and industry negotiators meeting in Austin, Texas, must now reach a deal on Sunday or face a possible strike.
U.S. pump prices rose this week on fears the strike would crimp supply, and prices could go higher if work stoppages have a major impact on the 50 percent of U.S. oil refining capacity operated by unionized workers.
But a worsening U.S. recession has smothered demand for gasoline and other refined products, and U.S. fuel stocks are plentiful.
A rolling extension means further extensions are possible as long as talks are progressing to the satisfaction of union negotiators.
Negotiators, who met through the day on Saturday, will resume negotiations on Sunday morning facing a deadline of 12:01 a.m. on Monday.
If a strike occurs, nearly 10 percent of U.S. refining capacity would stop production within days as leading refiners Valero and BP Plc have pledged to idle some of their refineries in a work stoppage.
Other big refiners like Shell and Exxon Mobil Corp say they plan to use replacement workers to keep their facilities churning out gasoline and other refined products should union workers strike.
The last nationwide strike by refinery workers was in 1980 and lasted about three months.
A local union official familiar with negotiations said the sticking point appeared to be the USW's push for stronger worker safety provisions in the new contract.
"It all comes down to safety," the official said. "It's not about money."
This round of talks is the first since the deadly 2005 explosion at BP's giant Texas City, Texas, refinery, which killed 15 workers. Union officials have promised their members worker safety would be a key feature of negotiations for a new contract.
At plants like those BP and Valero plan to shut, union workers would stay on the job until units were safely put on standby or turned off.
