Layoffs will make Come By Chance refinery less safe, union claims

The union staff representative for workers at the North Atlantic oil refinery in Come by Chancesays impending layoffs will make the refinery more dangerous.

• Come By Chance refinery owner lays off 128, citing economy

Boyd Bussey said the United Steelworkers (USW) will be filing a grievance over the layoffs.

"We don't see how they can lay off 107 of our people and 21 supervisors," Bussey told CBC's St. John's Morning Show.

"We don't see how they can do that and keep the refinery safe."

There were two very high profile incidents at the refinery in recent weeks, including a small explosion in early October that attracted police to the site, and a fire at a caustic tank last week.

There were no injuries in either incident.

• Refinery blames 'malicious activity' for explosion at Come by Chance
• Fire reported at Come by Chance refinery

Bussey pointed to the explosion as an example of what can go wrong.

"These refineries are extremely volatileplaces to work" he said.

"That could have easily ended off with fatalities coming out of that. We're on their case all the time about safety at the refinery, andwe believe that this layoff is going to do a lot more in the way of making the refinery unsafe for the people that work there."

We don't see how they can lay off 107 of our people and 21 supervisors. We don't see how they can do that and keep the refinery safe.- Boyd Bussey

Bussey noted the collective bargaining agreement, which runs until Jan. 1, 2020, contains a clause prohibiting layoffs of regular, full-time employees during the length of the agreement.

"So we're going to certainly pursue filing a grievance and taking that all the way to arbitration and asking an arbitrator to rule on the clarity of the language of the collectiveagreement," he said.

Layoffs were an 'extreme shock'

Bussey said it was because of that clause that the union had no idea layoffs were coming.

"We were taken completely by surprise," he said.

"This is an extreme shock not only to workers, but the local union and the communities."

As required by the agreement, the company sent the union a letter on Wednesday givingfour months' notice, meaning the layoffs would take effect March 9.

Glenn Nolan, president of Local 9316of the USW, said it will be Monday or Tuesday before the union learns what classification of workers will be affected.

"I don't know where they're going with this. I can't understand it," Nolan said, adding that profit margins at the refinery have been strong in recent weeks.

Nolan said workers are stressed, and communities throughout the Placentia Bay region and beyond will feel the impact.

One employee told CBC Newsworkers are on pins and needles, waiting to learn their fate.

Bussey said layoffs do happen from time to time for temporary workers.

"But there hasn't been a layoff of regular, full-time employees for years and years and years," he said.

Layoffs strictly about money, says union rep

NARLRefining has not responded to interview requests to address the safety concerns raised by the union.

"Current economic conditions and the impending regulatory changes, require the refinery to optimize operational costs and improve its competitive advantage," it said in a statement.

Bussey is skeptical.

"The United Steelworkers represent many, many refineries in the United States, so they've kind of got a handle on what's going on with these refineries," he said.

"Yeah, some may be having some downturn, but usually when the price of crude is down, the refineries make more money."

Bussey said as far as the union knows, the Come By Chance refinery is profitable.

"So I don't buy the 'submitting to economic pressure,'" he said.

"I think that this is strictly an issue about money, that the company's trying to make more money."

Uncertainty is nothing new

Meanwhile, uncertainty is nothing new for the refinery, and right from the very beginning.

The facility opened in 1973, but closed just three years later after the original owners went bankrupt.

It satidle for a decade before re-opening, and ownership has changed hands numerous times since.

The current owner, SilverRange Financial Partners out of New York, purchased the refinery more than two years ago for the rock-bottom price of less than $100 million.

Sources say the owners quickly paid off the purchase price, and arenow reaping healthy profits from the refinery.

A recent upgrade at the facility has resulted in production increasing from 115,000 to 130,000 barrels per day, and union officials saidthat number could grow.