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Marathon and Teamsters Union End Strike, Sign a Seven-Year Deal

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Marathon Petroleum Corporation (MPC - Free Report) and the Teamsters union, representing 275 workers, have successfully resolved their three-month strike at the Detroit refinery and entered into a seven-year collective bargaining agreement promising significant benefits and marking the end of the prolonged standoff.

Collective Agreement Marking Long-Term Benefits

An accord between MPC and the Teamsters union was inked after more than a year of negotiations and the first major three-month strike at the Detroit refinery in 30 years.

The new agreement is like a win for the union members, offering a 24.5% wage increase during the contract life, healthcare coverage paid by the employer, union security and access to the Teamsters Central States Pension Fund.

According to the union, the strike played a vital role in convincing Marathon Petroleum to acknowledge the important contributions of its workforce. They were also grateful to secure the agreement before the holiday season. They stated that the deal not only ensures safety and efficiency at the refinery but also delivers the rewards their members deserve.

MPC Ensures Continuity Amid Industry Challenges

During the three-month strike, the managerial people had to handle the everyday operations at the Detroit refinery, which refines approximately 140,000 barrels of oil per day. The refinery processes Canadian crude into essential products like gasoline, distillates and petrochemicals, and distributes the end products through pipelines, rail, barge and trucks. The strike coincided with a challenging period when the company faced the lowest profit margins in years.

Marathon Petroleum is all set to resume normal operations at its Detroit refinery, bolstering its energy production and distribution with the union members returning to their work post strike.

MPC’s Zacks Rank and Key Picks

Findlay, OH-based Marathon Petroleum Corporation is a leading independent refiner, transporter and marketer of petroleum products. Currently, MPC has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Suncor Energy Inc. (SU - Free Report) ,ARC Resources Ltd. (AETUF - Free Report) and Flotek Industries, Inc. (FTK - Free Report) . While Suncor Energy sports a Zacks Rank #1 (Strong Buy) at present, ARC Resources and Flotek Industries each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Canada-based Suncor Energy is a premier integrated energy company. The company's operations include oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining and product marketing. The Zacks Consensus Estimate for SU’s 2024 earnings indicates 0.26% year-over-year growth.

Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS (earnings per share) growth rate for next year is 51.59%, which aligns favorably with the industry growth rate of 11.70%.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.

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