Outsourcing Of Jobs At Valero Refinery

Letter
September 23, 2004



Altair Strickland

Whitney Strickland

1605 S Battleground Rd.
La Porte, TX 77571



Dear Whitney Strickland:



It has recently come to our attention that your firm has contracted with Diamond Refractory Services, L.P. to perform refractory services at the Valero Refinery in Benicia, California in the county of Solano. We understand that you had the option to choose Union Refractory versus using Diamond Refractory services. Although, corporate records for these two companies indicate they are the same company with two different names. Union refractory services would have utilized the local workforce. Why have you opted to use Diamond instead of Union Refractory? By using Diamond Refractory Services, L.P. you are creating an environment that will decimate area standards for the citizens of the community. The community cannot afford to have a reduction in these standards.

We further understand there have been approximately 800 Texas workers trained through Bay Area Training Corporation (BATC) classes, which is a requirement to work in the refineries in the San Francisco Bay Area. We feel this training could have been provided to California State certified journeymen who live and pay taxes in the surrounding communities where the refineries are located. One can only assume your company has visions of obtaining more work in our area utilizing out of state workers and displacing more local workers that support our communities. Money paid to an out of state workforce will most undoubtedly be sent out of state. It is estimated the amount of work to be performed will require approximately 20,000 hours of labor or $1.2 million in compensation to the workers. This interrupts the economic cycle and causes revenue displacement for local businesses that rely on the community for continued operations.

At this point in time, the people you will be displacing and the economic irresponsibility you will be demonstrating by this action must be addressed. As you must surely be aware, outsourcing of jobs is an extremely important issue to the general public and should not be tolerated when there are alternative resources. We understand the dynamic of using a workforce that comes from a financially depressed, right to work state as a way of lowering costs to the customer (Valero), but at what cost to businesses of that locality not to mention the displaced workers who have built and helped to maintain this refinery since its inception.

We would like to see a timely resolution to this situation.



Sincerely,



James C. Bresnahn



Cc: Ed Ruzikca - Altair Strickland, Sherwood McDonald - Altair Strickland, Chris Howe - Valero, Patricia Wiggins - CA Assemblymember 7th District, Barbara Kondylis - Solano County Supervisor, John F. Silva - Solano County Supervisor, Duane Kromm - Solano County Supervisor, John Vasquez - Solano County Supervisor, Ruth Forney - Solano County Supervisor, Jim Erickson - City Manager of Benicia, Karen Majors - Director/Assistant City Manager of Benicia, Wesley Chesbro D-Arcata Senate District 02; Michael Machado D-Linden Senate District 05, Lois Wolk - CA Assemblymember 8th District, Louis Franchimon - Napa-Solano Counties Building Trades Council