Today’s Labor Updates:
Steelworkers union calls latest energy worker contract proposal inadequate
Italy: Jobs Act ushers in labour reforms
Steelworkers union calls latest energy worker contract proposal inadequate
Oil company is acting on behalf of the energy industry nationwide
By L.M. Sixel|
January 27, 2015 | Updated: January 27, 2015 10:59pm
Labor negotiators for 30,000 energy workers, including 5,000 in the Houston area, instructed members of its bargaining units to reject the latest contract proposal from Shell Oil Co., according to a text message alert Tuesday from the United Steelworkers union.
“Oil Industry’s 2nd proposal falls FAR short-Inadequate & fails to address any key concerns of membership,” according to the text sent by labor negotiators from the union. Details of the offer weren’t available.
On Friday, the union rejected Shell’s first contract proposal, according to a text message calling it “offensive.” Shell is the lead negotiator, acting on behalf of the energy industry nationwide, for talks covering 233 sites including refineries, pipelines, oil terminals and petrochemical plants. Current contracts end Sunday at 12:01 a.m. for the majority of union-represented sites, including 19 locally.
“Negotiations continue … and Shell remains optimistic that a mutually satisfactory agreement can be reached,” said a statement from Ray Fisher, a Shell spokesman.
The list includes Marathon Petroleum Corp.’s Galveston Bay Refinery in Texas City, which has 1,282 union-represented workers, Royal Dutch Shell’s refinery in Deer Park with almost 1,000 union-represented workers and Chevron Phillips Chemical Co. in Pasadena with nearly 400 union-represented workers.
Up to the members
Once members of the oil policy committee of rank-and-file members along with union leaders agree on terms for a national contract, Shell will put the tentative agreement on one of its local bargaining tables. It will be up to members to accept or reject it.
While top negotiators hash over wages, benefits and other common concerns, each local union is meeting on “local issues.”
At Chevron Phillips Chemical’s Pasadena Plastics Complex, local union negotiators say the plant is chronically understaffed, and they’re fighting a proposal from the company that would require employees to put in more mandatory overtime.
If not enough volunteers come forward, employees are often scheduled to work mandatory extra shifts, said Ben Lilienfeld, sub-district director for the United Steelworkers. Other employees are assigned pagers and if they’re called in, they have one hour to report for work, he said. Employees are not paid for time spent waiting.
Employees work 12-hour shifts, and that concentrated work schedule periodically provides workers with seven consecutive days off, Lilienfeld said. Currently the only way to protect that protracted stretch from mandatory overtime, however, is to take a vacation day at the beginning or the end of the long stretch.
The company wants to do away with that vacation day protection, Lilienfeld said, meaning employees could be forced to work during their scheduled time off and can’t plan vacations or other activities.
Chevron Phillips Chemical Co. did not reply to a request for comment.
LyondellBasell
Lilienfeld said he’s also wrestling with negotiations at the LyondellBasell Refinery in Houston. The company has asked for several concessions, he said, including cuts in holiday bonus pay and reductions to its short-term disability benefits.
“As you might expect, it would be inappropriate for us to comment on the current labor negotiations while discussions are underway,” according to a written statement from LyondellBasell.
Rally Wednesday
Union leaders plan a rally Wednesday at 4:45 p.m. in front of that refinery.
Union leaders are also getting ready for a possible protracted dispute there by renting portable toilets and a “strike shack” they can use if union members go on strike, said Joshua Lege, next generation coordinator at the United Steelworkers union.
Employment & Benefits
Italy: Jobs Act ushers in labour reforms
Contributed by Stanchi Studio Legale
January 28 2015
On December 3 2014 Parliament approved Law 183/2014 – the so-called ‘Jobs Act’ – which instructs the government to enact within six months numerous decrees necessary to bring about significant changes to Italian labour law.
Reinstatement of employees
The law provides for contracts with increased protections for new employees. In particular, the new contract form omits the provision regarding reinstatement in the event of dismissal for economic reasons in favour of a new provision for compensation that increases proportionally with length of service.
Previously, in case of termination for economic reasons, an illegally fired employee could obtain reinstatement for a manifest lack of grounds for dismissal. The new law maintains the reinstatement provision only for invalid or discriminatory dismissal, as well as for specific types of disciplinary dismissal.
The new permanent contract form with enhanced safeguards will become the new dominant form of employment relationship.
On December 24 2014 the first decree regarding the issue of dismissal was approved. It confirms that the reinstatement provision has been maintained for:
•oral, discriminatory and invalid dismissals;
•dismissals for justified subjective reasons; and
•cases in which there are no factual grounds for dismissal.
In regards to dismissals for cause, justified reasons or objective economic reasons, the decree provides for an indemnity amounting to two months’ salary for each year of service. For collective dismissals, the indemnity can amount to no less than four and no more than 24 months’ salary.
Demotion of employees
The Jobs Act amends the rules governing the demotion of workers. At present, the employee cannot be assigned to duties lower than those provided for in his or her hiring contract. However, case law has watered down this prohibition with certain exceptions (eg, the employer can assign lower duties in order to avoid dismissing the employee). The recent reform allows the employer to change workers’ duties in case of company reorganisation or restructuring.
Remote control of work systems
It is expected that a review will be undertaken of the regulation of remote control of work systems and tools under Article 4 of Law 300/70. The new measures will cover only system-wide controls – not specific controls over individual employees – and will balance production and organisational needs with the need to protect the dignity and privacy of employees.
Resignation of employees
Simplified procedures have been envisaged for the employee resignation process in order to ensure certainty as to the date of resignation, as well as the employee’s willingness to resign or the consensual resolution of employment.
Welfare payment
The old welfare payment (ASPI) will be calculated based on contributions paid by the employee.
Unemployment insurance
In the event of termination of a business or a business branch, access to unemployment insurance (CIG) will be subject to the depletion of solidarity contracts and the duration of this insurance will be reviewed.
Administrative procedures
The procedure and requirements established to manage the working relationship between employer and employee will be clarified and simplified in order to reduce the administrative burden on employees.
Maternity compensation
The Jobs Act introduces maternity compensation for all categories of employed women and the right for ‘parasubordinate’ working mothers (ie, consultants) to receive assistance even where the employer does not make contributions. Moreover, employees of the same employer may transfer all or part of their additional holidays to colleagues with minor children who are seriously ill.
For further information on this topic please contact Andrea Stanchi, Annamaria Pedroni or Laura Lattanzi at Stanchi Studio Legale by telephone (+39 02 546 9522), fax (+39 02 551 91641) or email (a.stanchi@stanchilaw.it, a.pedroni@stanchilaw.it or studio@stanchilaw.it).