Husky Responds to Workers/ Contract Details - Hometownstations.com-WLIO- Lima, OH News Weather Sports

Lima Refinery Maintains Normal Operations – Husky Lima Refinery is maintaining normal operations despite a strike by United Steelworkers Union Local 624 (USW). The Company has put forward a labor contract proposal that provides benefits that are in accordance with or exceed the national pattern of accepted agreements at refineries.

Lima, Ohio (May 25, 2012)

Contingency plans have been put in place to provide for continued safe and reliable operations during a labor disruption. These include using experienced technical staff and former front-line workers who have moved into management positions. All replacement workers are trained to the same requirements and occupational safety standards as the regular workforce, and each person has received specific process unit and task-oriented training.

Husky has put forward several offers that meet and exceed agreements recently signed at other U.S. refineries. It has always been Husky's goal to fairly compensate workers for the work they do. It provides:

• A three-year contract

• Wage increases of 2.5%, 3% and 3% in each of the next three years (with the adjustments, wages will average about $37 per hour)

• An additional wage increase for specific employees in senior operations positions

• A medical insurance program 80% funded by Husky

• A proposed 401k pension plan that increases contributions for 99% of employees and provides for immediate vesting

• The addition of a new union-represented health and safety role

Other items in the offer are related to the Company's ability to maintain a flexible workforce, increase safety, and reduce a higher than standard absenteeism rate. These improvements are necessary to remain competitive in a challenging refining industry. A number of U.S. refineries have closed in recent months as the industry faces increased global competition, high crude oil prices and volatile refining margins.

In addition to the original investment in 2007, Husky has invested over $600 million in capital improvements to improve safety and achieve operational efficiencies. The Company is committed to maintaining and enhancing the Refinery's competitiveness in order to ensure its viability today and for the future.