Preparing for a possible strike that could affect U.S. gasoline supply, the union that represents refinery workers this week voted to increase its strike fund.

The United Steelworkers, which represents workers at most of the nation's largest refineries, voted Tuesday afternoon to increase dues on members to fortify a $142 million strike fund. The vote came in the middle of USW's week-long convention which drew 3,000 USW members from a variety of industries.

While union leaders stressed that a strike at oil refineries is neither imminent nor inevitable, representatives from labor adopted a tough line ahead of the first new contract talks in six years. The 2008 negotiations will also be the first in which refinery workers will be represented by the USW, which is regarded as a more formidable organization than the Paper, Allied-Chemical Energy Workers union with which the USW merged in 2005.

"We've got our sights set at the oil industry," Leo Gerard, the international president of USW, said this week during the union's conference in Las Vegas. "We'll be ready to bargain the pay, the benefits and in particular for safer conditions."

Royal Dutch Shell PLC (RDSA), which will lead the negotiations on behalf of all of the oil companies, hopes to avoid a strike.

"We're optimistic that we can reach a negotiation to avoid strike," said Shell spokesman Stan Mays.

One of the largest labor unions in the world, the USW represents some 30,000 refinery workers in the U.S. at more than half the nation's refineries.

The workers' contract expires at the end of January. If the negotiations go badly, resulting in a strike at some or all of the plants, gasoline prices could move far above today's record of $4.09 a gallon. The last strike involving refinery workers occurred in 1980.

"We're going to teach them solidarity works," Gerard said. "This round of bargaining, they're going to learn to play straight or they're going to have hell to pay."

Even if a strike does take place, not every plant's workers would necessarily picket. The union is organized so that the leader of the oil workers, Gary Beevers, could decide which plants would strike first and then gradually expanding the effort.

This year, the union says it could have more clout in the strike, because high gasoline prices may galvanize public support for a fight against the companies.

However, one refinery worker said public opinion could easily turn against strikers. For instance, an American making $15 an hour at a grocery store may not want to hear complaints from refinery employees, who work for an average hourly rate of $30. Workers say though that salary is not their main concern, rather affordable healthcare and safety concerns are significant.

Union Fund

The union is proposing that each worker contribute an additional 3 cents an hour to the strike fund.

The increase will immediately allow the union to pay strikers $150 a week instead of $115. In two years, the increase will allow for a $200 weekly check.

Even if the vote passes, oil workers, who joined USW after it merged with PACE in 2005, will not have to pay until 2011. However, refinery workers who opt against paying the higher dues in the short term will only receive $115 a week if there is a strike at petroleum refineries.

Beevers said a better health plan will also be available to strikers than in the past. The strike fund and health benefits are important because if there is a work stoppage, it could last long, he said.

"You've got to be prepared to fight," Beevers said. "Strikes don't last a week or two anymore, they last six months."

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