Teamsters Say They May Go on Strike Against Northern Tier Refinery

The International Brotherhood of Teamsters said it will host a call on Dec. 27 to update industry analysts and investors of both Northern Tier and Western Refining about a potential strike that could shut down Northern Tier’s only refinery as soon as midnight Wednesday, Dec. 31. Nearly 200 workers at Northern Tier’s refinery in St. Paul Park, Minn., are represented by Teamsters Local 120.

Northern Tier’s refining segment represents about 72% of the company’s revenue, the Local said in a statement. The company also owns and/or operates more than 200 SuperAmerica retail outlets in South Dakota, Minnesota and Wisconsin and supplies its gas stations. These businesses would also be impacted by a work stoppage.

El Paso-based Western Refining acquired the 38.7% controlling stake of Northern Tier for $775 million in November 2013. Northern Tier’s 2014 projected net income could represent more than 25% of projected net income for Western Refining in the new year, the Local said.