The United Steel Workers Union supported a walkout at 9 US Oil Refineries after a labor contract expired on Sunday. Unable to reach an agreement prior to the deadline of the existing contract, the USW felt that it was in the worker’s best interest to abandon then jobs. The leverage created in favor of the worker’s demands increases dramatically when the business is unable to produce the products that make it money. This walkout threatens the US gasoline and oil supply, as well as jeopardizes the low prices that we have been enjoying these past months.
Unionized Oil Workers Go On Strike At 9 US Facilities
Right now, the refineries on strike represent almost 10% of the US oil supply, but if more go on strike as expected, then the US oil supply could be dramatically cut. This supply shortage would result in an unwelcomed price increase at the pump, which will definitely get consumers to take notice. It seems that the low prices in the gasoline industry have made it difficult for big companies to feel comfortable giving into their demands.
The USW has been working with oil workers to help secure higher wages, as well as more security on the job. The workers want additional protection from losing their jobs to contracted workers who typically work for lower wages and with less benefits. The lower profit margins have oil executive sitting on edge, but the reduction in supply should hurt these companies even more.
Meanwhile nearly every single US consumer will be expected to bear the burden of these worker’s demands. Better get out there and top off the tank this weekend, before inevitable price increases hit your local gas station hard.
Unionized Oil Workers Go On Strike At 9 US Facilities.