LABOR’S LAST STAND IN THE REFINERY: THE SHELL OIL STRIKE OF 1962-1963 BY TYLER PRIEST Unless otherwise indicated, all photos from USW Local 4-1, Pasadena, TX. Pasadena, 4-1, Local USW from photos all indicated, otherwise Unless Striking OCAW Local 4-367 employees outside the gate of the Shell Oil Deer Park ❒ Individual: ❒ $15 – 1 yr refinery in 1962. “The true majesty of the oil industry is best seen in a modern along soaring platforms, catwalks, and ladders, the ❒ $30 – 2 yrs refinery,” wrote oil journalist Harvey O’Connor in 1955. catalytic cracking unit affords one of the magic ❒ Student (please include copy Few monuments of industrial architecture could compare to sights of twentieth century technology.”1 of student id): ❒ $10 – 1 yr a refinery’s giant crude oil tanks, topping plants, distilling Today, when driving over the Sam Houston Tollway ❒ Institution: ❒ $25 – 1 yr columns, fractionating towers, platformers, extraction plants, Ship Channel Bridge, even long-time residents of Houston lubricating oils units, and de-waxing units. The centerpiece cannot help gawking at a spectacle that includes not merely Donation: $ of the modern refinery, however, was that “sublime industrial one refinery, but dozens stretching along the Houston cathedral known as a ‘cat-cracker’,” where petroleum Ship Channel and around Galveston Bay. Conspicuous molecules were from this vantage point is Shell Oil’s Deer Park complex. Tyler Priest is Clinical Professor Return to: broken down and Built in 1929 and expanded with a giant cat cracker after Center for Public History and Director of Global Studies rearranged to form at the C.T. Bauer College World War II, Deer Park joined Wood River in St. Louis University of Houston of Business, University of high-octane motor and Norco in New Orleans as Shell Oil’s major East-of- Houston, Texas 77204-3003 Houston. He is the author, gasoline and other the-Rockies refineries. A showcase for the latest in postwar most recently, of The Offshore fuels. “By night,” refining technology, Deer Park also became a template Imperative: Shell Oil’s Search for mused O’Connor, for the latest developments in labor relations. As Harvey Petroleum in Postwar America “with a thousand O’Connor, who was once a publicity director for the Oil (College Station: Texas A&M lights pricking University Press, 2007). Workers International Union (OWIU), clearly understood, the darkness Houston History Volume 5, number 2 spring 2008 7 8001157_UofH.indd 7 10/13/10 8:19:13 AM a modern refinery was not just an job security. Most importantly, they that happened at the plant. Plant assemblage of tanks, towers, pipes, and won greater say over workplace rules. managers retained substantial power valves, but a place where more than two These victories were short-lived, well into the mid-twentieth century, thousand workers earned their living. however, as technological changes in even after the rise of organized labor. Oil refining came to Houston after refining undermined labor’s ability to Explained Jim Henderson, a former the construction of the ship channel strike. Management began to push back chemical engineer at Deer Park and and World War I. By 1941, Houston in the late 1950s, forcing confrontations excecutive vice president at Shell Oil, had displaced Beaumont/Port Arthur, with OCAW in contract negotiations. “the refinery or plant manager was next where oil from the great Spindletop The big showdown came in 1962-1963 to God! One really didn’t speak unless 2 field had been processed, as the largest at Shell Oil’s Deer Park refinery and you were spoken to.” Tom Stewart, refining center on the Gulf Coast. The chemical plant, where 2,200 OCAW who joined the Deer Park refinery’s Second World War generated soaring Local 4-337 workers went on strike public affairs department in 1955, took demand for gasoline, aviation fuel, for nearly a year, the longest in the it a step further. “The refinery manager 3 and other petroleum products, and history of the industry. By successfully was God!” he exclaimed. Refineries and spurred the construction of refining restarting the plant with technical chemical plants were organized along and chemical plants up and down and supervisory personnel, Shell rigid lines. The chain of command the Gulf Coast from Corpus Christi Oil’s management removed workers’ began with the manager, ran through to New Orleans. This sprawling main source of bargaining leverage, a superintendent-operations directly landscape of refining under him, and on down to assistant and petrochemical superintendents and plants, the largest managers of the various 4 concentration by far in refinery departments. the world, profoundly The lower an shaped the growth individual was on the and industrialization organizational chart, of the Gulf Coast the less authority he region. For decades, had to make decisions the oil companies who and the fewer duties he owned these refineries had to perform. Plant exerted their influence managers maintained in both subtle and control by virtue of strong-armed ways these narrowly defined over transportation, positions and tasks, education, politics, but they also reserved and labor. the right to alter job duties at any time, not Although petroleum to mention hire and fire refining was a relatively at will. Corporate and capital-intensive Inside Deer Park’s cat cracker control room. plant managers viewed industry, from inception the ability to withhold their labor. refinery work, with its it depended on a stable and compliant relatively high wages, shorter hours, and workforce. During the early decades This proved to be labor’s last stand in refining, the moment management steadier employment in the regional of the century, oil companies enjoyed labor market, as a privilege, not a right.5 unchecked authority over their refinery asserted decisive and enduring workers. Tensions arose during and control over the refinery workplace. During World War I, refinery workers after World War I over workplace The Rise of Unionized began to demand more say in how control. By the end of World War II, Labor in Refining work was organized. Strikes in 1915 at the OWIU, affiliated with the Congress Standard Oil of New Jersey’s plant at In the early years of the industry, oil Bayonne, New Jersey, in 1916 at Gulf of Industrial Organizations (CIO), company management dominated emerged as a powerful representative of Oil’s Port Arthur refinery, and in 1918 their refineries and vigilantly resisted at Magnolia’s Beaumont plant led to the oil workers, especially in the Houston unionization. Foremen often picked area. Through a series of strikes during formation of grievance committees and workers arbitrarily, and plant managers shop rules. In the “labor-management the next decade, the OWIU and its wielded tremendous influence successor, the Oil, Chemical, and accommodation of the 1920s,” oil over hiring, promotion, and labor company management headed off Atomic Workers (OCAW) union, negotiations -- in fact, over everything obtained concessions on wages and outside union organizing through 8 Houston History Volume 5, number 2 spring 2008 8001157_UofH.indd 8 10/13/10 8:19:13 AM “welfare capitalist” measures (i.e. OWIU successfully organized 11 of at Deer Park in 1947, lasting 64 days, eight-hour day, guaranteed vacations, the 12 largest refineries on the Gulf started in reaction to the potential death and injury benefits, shop rules, Coast of Texas. In 1933, the employees pay cut resulting from Shell Oil’s provision of low-cost housing, etc.) of Deer Park organized into the Oil peacetime switch from 48- to 40- and the creation of “independent” or Field, Gas Well, and Refinery Workers hour weeks. Another national strike “company” unions. Modeled on the of America. Shell Oil met with the in 1952 which endured for 73 days employee relations plan instituted at employee’s union committee, but led to a 15 percent wage increase after Humble Oil’s Baytown plant, these refused to recognize the union. a month-long shutdown at many measures improved working conditions, In 1937, the union, now part of refineries that brought oil supplies in and company sponsored labor the OWIU (Local 367) with an many states to dangerously low levels organizations gave employees a limited office in Pasadena, Texas, struck the in the middle of the Korean War. The 6 voice in shaping those conditions. But plant for 34 days in its quest for a industrial union movement gained the companies still made it clear they collective bargaining contract. This strength in 1955 when the OWIU 7 were extending privileges, not rights. strike led to contract negotiations merged with the United Gas, Coke, Racial segregation in Gulf Coast before the National Labor Relations and Chemical Workers (UGCCW) to refining operations bought compliance Board (NLRB) and the signing of form the Oil, Chemical and Atomic from white workers who generally the first formal contract in 1941.11 Workers Union (OCAW). The same harbored racist attitudes. Rather than The unionization of Deer Park and year, CIO and AFL merged, and Shell setting formal rules about segregating other Gulf Coast refineries by the Oil’s Deer Park union became part of 13 their workforce, refineries OCAW Local 4-367. As demand for followed the example set oil and chemical products soared by the local construction during the 1950s, oil companies industry, setting up an grudgingly accepted the new labor informal “two-pool” arrangement as a way, at least, system which channeled to force issues at the bargaining African Americans and table and maintain a stable labor Hispanics into labor gangs supply to staff expanding refinery performing menial work, operations. Strikes had become which at refineries ranged more predictable than in the from ditch-diggers to past, and companies could make janitors, while reserving preparations to deal with them.