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Sun goes down on 750
Oil giant Sunoco had made it clear in recent months they were looking to reduce costs – and jobs.
A few weeks back, as they negotiated contracts with unions representing workers at both their Marcus Hook and Philadelphia refineries, the company floated the idea of laying off three of five union fire marshals at the Hook facility. That would have ended a longtime tradition of 24-hour, seven-day-a-week in-house fire coverage. The union blasted the idea as putting workers’ safety in jeopardy. The next day the company abandoned the idea.
But they did not abandon their desire to cut costs.
Thursday night the United Steelworkers approved their new deal at the Marcus Hook refinery. On Friday their counterparts in Philly did the same.
In both instances, the unions were successful in keeping language safeguarding jobs.
It was pretty clear management was going to need to look elsewhere for the cuts.
Friday morning, white-collar workers found out where. Those white collars were turning red, from the bloodletting in the company’s front offices.
Sunoco annouced Friday they would eliminate 750 salaried jobs from its management staff. Most of the jobs will be shed in the Philadelphia region. The company’s headquarters is in Center City. That’s 20 percent of their white collar force. The refineries will not escape cuts, but most of jobs lost will be suits. Sunoco did announce they also would be offering buyout packages to some union refinery workers.
The deal that union workers approved at the Hook refinery includes wage hikes of 3 percent in each of the three years, along with a $2,500 lump-sum payment and continuation of their health care packages.
White-collar workers got a different kind of lump sum. The lump you get in your throat when you realize you’re getting a pink slip.
Sunoco reported net income of $776 million last year. But the company insists the cuts are necessary as they move into “one of the down cycles where market conditions are challenging.”
Jim Savage is head of the union at Sunoco’s Philadelphia refinery. He is happy with the deal his workers got, but realizes it likely came at a price.
“In my opinion, Sunoco had a number they were going to get to, and they couldn’t get more from us, so they took from them – and it’s a shame,” Savage said.
He referred to the layoffs as “gluttony.”
Savage, you might say.
A few weeks back, as they negotiated contracts with unions representing workers at both their Marcus Hook and Philadelphia refineries, the company floated the idea of laying off three of five union fire marshals at the Hook facility. That would have ended a longtime tradition of 24-hour, seven-day-a-week in-house fire coverage. The union blasted the idea as putting workers’ safety in jeopardy. The next day the company abandoned the idea.
But they did not abandon their desire to cut costs.
Thursday night the United Steelworkers approved their new deal at the Marcus Hook refinery. On Friday their counterparts in Philly did the same.
In both instances, the unions were successful in keeping language safeguarding jobs.
It was pretty clear management was going to need to look elsewhere for the cuts.
Friday morning, white-collar workers found out where. Those white collars were turning red, from the bloodletting in the company’s front offices.
Sunoco annouced Friday they would eliminate 750 salaried jobs from its management staff. Most of the jobs will be shed in the Philadelphia region. The company’s headquarters is in Center City. That’s 20 percent of their white collar force. The refineries will not escape cuts, but most of jobs lost will be suits. Sunoco did announce they also would be offering buyout packages to some union refinery workers.
The deal that union workers approved at the Hook refinery includes wage hikes of 3 percent in each of the three years, along with a $2,500 lump-sum payment and continuation of their health care packages.
White-collar workers got a different kind of lump sum. The lump you get in your throat when you realize you’re getting a pink slip.
Sunoco reported net income of $776 million last year. But the company insists the cuts are necessary as they move into “one of the down cycles where market conditions are challenging.”
Jim Savage is head of the union at Sunoco’s Philadelphia refinery. He is happy with the deal his workers got, but realizes it likely came at a price.
“In my opinion, Sunoco had a number they were going to get to, and they couldn’t get more from us, so they took from them – and it’s a shame,” Savage said.
He referred to the layoffs as “gluttony.”
Savage, you might say.
posted by Heron's Nest at
7:46 AM
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