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The production of petroleum products from the largest oil refinery in Europe – Shell's Pernis refinery (404,000 b / d) in the Netherlands – will be reduced following a strike on Monday by workers, demanding higher wages.
"There will be an impact on production but at this stage we can not say exactly what the exact impact will be because we do not know it yet," said a Shell spokeswoman today. to Reuters, confirming that the workers' strike threatened in March had begun.
In March, the Dutch CNV union gave Shell seven days to respond to their demands before announcing a strike.
According to CNV, at the end of last month, workers would reduce their production at the Pernis refinery and the Moerdijk chemical plant as of April 8 and keep their production at lower levels until the demand for workers be satisfied.
The union had not given any indication of the scale of the reduction in production, but Pernis is Europe's largest oil refinery and it is necessary to reduce production to a which would force Shell to meet the demand for higher wages.
The unions want a 5% pay raise, while Shell proposes a 2% increase this year and another 2.5% increase next year, according to Reuters.
"We are taking it every day, we will have another technical meeting with the unions this afternoon and we will take it from there," Shell spokeswoman Reuters told Reuters today.
According to FNV, the production of the Pernis refinery will be gradually reduced to 65% of the capacity of the facility, as part of the strike to obtain higher wages.
The reduction will be maintained until Wednesday evening, after which the union will discuss the progress of the negotiations and what will happen next, FNV spokesman Egbert Schellenberg told Reuters on Monday.
Shell has just launched a new unit at Pernis last October to improve its performance and reduce its impact on the environment by allowing more oil to be converted into cleaner transport fuels.
By Tsvetana Paraskova for Oilprice.com
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