PACE Gets US Oil Bargaining Pattern with Deal at Shell

A pattern oil bargaining agreement for 30,000 US workers was reached last week, a year before the current four-year labour agreement was due to expire. ICEM affiliate PACE and Shell came to terms on a three-year extension that will now be carried to other oil companies primarily operating in the US downstream sector. The contract contains wage gains of 3.5% for 2006, 3.5% in 2007, and 3.7% in 2008, plus gives workers a US$1,500 ratification bonus. Perhaps most importantly, however, as a measure to address a problem common in many US labour-management talks is creation of a joint union/management Health Care Strategic Committee that will devise solutions to lessen the impact of soaring health costs on all parties.