Tesoro to continue oil refinery operations despite steelworker strike

Source:Tesoro Corporation

Tesoro received strike notifications at its refineries in Anacortes, Washington, the Carson portion of its Los Angeles, California refinery and its Martinez, California refinery.

Tesoro Corporation (NYSE:TSO) ("Tesoro" or the "Company") announced today that the Company intends to continue operating two refineries impacted by the United Steelworkers union (the "USW") decision to strike. Tesoro is confident that the Company can continue to safely operate the refineries and meet customer commitments until resolution is reached with the USW.

Tesoro received strike notifications at its refineries in Anacortes, Washington, the Carson portion of its Los Angeles, California refinery and its Martinez, California refinery after the USW collective bargaining agreements expired on January 31. The strike notifications received by Tesoro were part of a number of strike notifications received throughout the national refining industry.

"We are extremely disappointed by USW local bargaining units' decision to strike. We have bargained in good faith and were prepared to continue to do so. The national United Steelworkers union instead chose to call for a strike," said Keith Casey, Executive Vice President, Operations, Tesoro. "We intend to safely operate our refineries with fully qualified personnel and are confident in our ability to continue to responsibly produce transportation fuels to meet the needs of our customers," said Casey.

As a result of the Company's comprehensive approach to strike contingency planning, Tesoro successfully made the transition to operating the Carson portion of its Los Angeles refinery Sunday morning despite the USW violating the longstanding practice of providing a minimum of 24 hours' strike notice.

The Company also safely completed transition of operations at its Anacortes refinery on Sunday.

The strike action by the USW is expected to extend current maintenance activities at the Martinez refinery, where about one half of the refinery has been undergoing planned work for the last month. Further, the Company indicated that due to the USW's decision to strike during ongoing maintenance activities, the safest operating position at this time is to idle the remaining process units. Tesoro intends to utilize its integrated West Coast system to meet the ongoing needs of its customers.

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