DATE:             January 31, 2012

TO:                  National Oil Bargaining Groups

                        Staff Representative assigned to NOBP Groups

FROM:            Gary Beevers, International Vice President

CC:                  International Executive Board

                        NOBP Policy Committee

NOBP GENERAL MESSAGE #8

Greetings:

Please be advised that the following offer has been approved by the National Oil Bargaining Policy Committee as the minimum settlement on the issues covered by the 2012 National Oil Bargaining Program.  In accordance with the National Policy, it should be placed on all bargaining tables as the basis for settlement of National Policy Issues.

SETTLEMENT OFFER

The Company proposes that all issues raised by the 2012 National Oil Bargaining Policy be resolved as follows:   

TERM OF AGREEMENT

February 1, 2012 through January 31, 2015.

WAGES

Effective February 1, 2012, all hourly wage rates will be increased 2.5% rounded to the nearest cent.

Effective February 1, 2013, all hourly wage rates will be increased 3.0% rounded to the nearest cent.

Effective February 1, 2014, all hourly wage rates will be increased 3.0% rounded to the nearest cent.

PROCESS SAFETY

The parties agree to execute the attached Letter Agreement regarding Process Safety (Attachment 1). This Letter Agreement will apply only to USW represented refineries and chemical plants.

HEALTH CARE 

The Company renews and extends its current commitments that the Company’s contributions toward premiums for the Shell medical plan for active employees will be based on an employer contribution rate of 80% of the premium and an employee contribution rate of 20% of the premium.  The Company’s contributions toward premiums for approved alternate company sponsored medical plans for active employees will be based on an 80% contribution, but in no case will it exceed its monthly contribution to the Hospital Surgical Medical (HSM) option.     

NO RETROGRESSION

The Company agrees to renew the letter agreements on layoff notice, plant closure, rate retention, national health insurance, health and safety, successorship, and job security where such letter agreements exist.

Attachment 1

Letter Agreement

(Applicable only to USW represented Refineries and Chemical Plants)

Re:   Process Safety

This Agreement confirms the understandings reached between the United Steelworkers International Union (USW), Local ______ (hereinafter referred to as “the Union”) and                    Manufacturing Site (hereinafter referred to as “the Company”), and both (hereinafter referred to as “the Parties”), regarding Process Safety language.  This Agreement supplements Article ____ Health & Safety in the Articles of Agreement. 

General Provisions

The Parties agree maintaining a safe workplace is important to all employees and to the sustainability of the petrochemical industry in the US.  Over the years, the Parties have invested resources and training into various health and safety activities and programs at our site to improve health and safety performance. This document covers several actions that have been agreed by the Parties to build on this through existing health and safety processes, including process safety.   

The Company has a responsibility for occupational health and safety and every employee has a role to play in maintaining a safe work environment. In this Agreement, the Union, through its various representatives, committees, and officers, has been accorded certain participatory rights relating to represented employees’ health and safety; however, it is not the intention of the Parties that these provisions or the Union’s exercise of its rights thereunder shall in any way diminish the Company’s final authority for occupational health and safety performance, process safety or hazard identification.

Process Safety Representative

The Parties recognize potential differences in existing site-level staffing and support structures associated with health & safety management.  The Parties also recognize that the size and complexity of a particular site may warrant different support models to optimize employee involvement in process safety matters.  With these recognitions, the Parties agree to establish one Process Safety Representative role for each manufacturing site with one hundred and fifty (150) or more bargaining unit employees where such a role does not already exist.  For sites with less than one hundred and fifty (150) bargaining unit employees, the Parties agree to meet to discuss alternatives, which may include incorporating process safety duties into an existing health and safety role.  The Parties agree to meet as soon as practicable, but no later than sixty (60) days from the ratification of this agreement, to discuss the specific process safety responsibilities and duties and finalize these at the site level. 

The Parties agree to incorporate into their local discussions on this subject, the following tenets:

Selection:  The Process Safety Representative will be selected utilizing the existing health and safety role selection process, from interested qualified candidates who are nominated by the Company and/or Union Leadership. 

Reporting Relationship:  This role will be assigned to the Process Safety Department and report directly to the Site Process Safety Manager.

Length of Assignment:  The person selected for this role will be in this role for the term of the Agreement or shortened or lengthened as mutually agreed.   

Annual Performance Review:  The Process Safety Representative’s performance will be reviewed utilizing the existing health and safety role performance review process.

Pay:  This role will be paid $1.00 per hour above their current classification rate or equivalent to the collectively bargained rate of pay for a safety role at the Site where such role already exists.   

Confidentiality/Proprietary Information:  The person in this role may have access to and use information that may be considered trade secrets and proprietary.  Such information must be accessed and handled in a confidential manner and not disclosed except in accordance with Company policies, including the signing of a Confidentiality Agreement applicable to other employees.  If there is any question about the confidential nature of information, he/she must seek the advice from the Site Process Safety Manager. 

Process Safety Training

The Company understands the importance of process safety training and awareness.  Therefore, the Company agrees to pay for reasonable time and travel costs, if applicable, associated with one week (40 hours) of initial process safety training for the Site Joint Health and Safety Committee where such committees exist, and the Process Safety Representative, where applicable. The Company will seek input from the Site Joint Health and Safety Committee before finalizing the training content.  This training opportunity will be made available once during the term of the contract.  The Company may also provide other health, safety and process safety training. 

Fatigue Prevention

The Parties acknowledge that a Recommended Practice (RP) regarding Fatigue Risk Management Systems has been issued by the American Petroleum Institute (API), API Recommended Practice 755.  The Parties agree to meet and discuss as soon as practicable, but no later than sixty (60) days from the ratification of this agreement, the application and implementation of this RP.  The Parties will fulfill any bargaining obligations, where necessary, in connection with the implementation of the new RP, including changes to the existing contract language.  It is agreed and understood that both Parties will provide support and cooperation to ensure successful implementation of the new RP.

Annual Site Process Safety Review

The Parties agree that there is value in having annual site process safety reviews to increase general awareness on process safety by reviewing process safety metrics, by learning from incidents that occur and by sharing best practices. This review will be held on an annual basis with the members of the Site Joint Health and Safety Committee.  The Company will seek the Site Joint Health and Safety Committee’s input before determining the content of the material to be reviewed.

These individuals may have access to and use information that may be considered trade secrets and proprietary. Such information must be handled in a confidential manner and not disclosed except in accordance with Company policies.   

The Parties agree to meet and discuss as soon as practicable, but no later than sixty (60) days from the ratification of this agreement, the specifics on how to implement the Annual Site Process Safety Review.  In addition, the Parties agree there is value in learning from the experience of other USW represented sites within the Company, and will discuss how to involve the Site Joint Health and Safety Committee in accomplishing best practice / information sharing.

Agreed to and accepted this ___________ day of ____________________, 2012.

All strike authorizations formerly extended are hereby withdrawn.  The industry has agreed that all locations, effective at the expiration of the contract, will be immediately on a 24 hour rolling extension.  

Any location that is contemplating local union strike action is asked to delay that action for at least 48 hours. 

Be advised that the same reporting procedure is in effect as we move through this process.  All proposals that you receive during this process should be faxed to Julie and you should wait for our response as to whether they are approved by me.

Remember, no staff representative or local union official is authorized to approve a tentative agreement on this National Oil Bargaining Proposal until I have read and approved the offer.  We will respond as soon as possible.

Sincerely and fraternally,

Gary Beevers