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Unions plan on stalling tactics

August 3rd, 2010

MONTREAL – Government regulators will come under intense union pressure to stall Shell Canada Products’s plans to convert its east-end Montreal refinery into a terminal, labour leaders said yesterday.

The plans for a terminal, which would result in the loss of almost 500 high-paying jobs, are inevitable after negotiations ended with potential buyer Delek US Holdings Inc., Shell said.

Union leaders said they’re asking Quebec to use provincial laws governing environmental protection and oil products to make the conversion more difficult for Shell. For example, Shell cannot demolish its oil-refining equipment when it converts to a terminal, which would receive refined oil from both domestic and international markets.

“It’s clear that we are going to use these tactics to stop the conversion,” said Jean-Claude Rocheleau, president of local 121 of the Communications, Energy and Paperworkers Union of Canada.

The conversion to a terminal would eliminate all but 25 to 30 jobs at the site, which is now staffed by about 500 unionized workers and an additional 250 temporary, full-time employees. The workers, including engineers, welders and technicians, earn about $80,000 a year, on average, Rocheleau said.

“This will make Quebec poorer,” he said.

Larry Lalonde, spokesperson for Shell, which operates 280 company-owned retail outlets and a wholesale business in Quebec, said any delays to the permit-approval process could result in shortages.

While Shell doesn’t need to demolish parts of the plant, it is seeking government approval to modify certain pieces of equipment.

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