Unifor is raising serious concerns following the proposed sale of a Burnaby refinery to an American firm.
Current political and energy concerns related to a trade war between the United States and Canada (and most of the globe) have heightened the concerns.
Unifor says the Burnaby refinery was one of the province’s last. If the deal closes, it would be sold to Sunoco, an “American energy giant” headquartered in Dallas, Texas.
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On May 5, Parkland announced it had entered a definitive agreement where Sunoco would acquire all their outstanding shares of Parkland, in a cash and equity transaction valued at approximately USD$9.1 billion.
Unifor National President Lana Payne had some thoughts on the timing of this deal, which Parkland calls a significant milestone.
“This is not the time to hand over control of critical energy infrastructure to a foreign multinational, especially in the middle of a trade war,” Payne said.
Parkland’s president says it offers great value for shareholders.
“This transaction delivers immediate value for shareholders, including an attractive 25 per cent premium. Sunoco shares our commitment to growth, customer service, operational excellence, and ongoing investment in Canada, making our combined business stronger and better positioned for sustained success,” said Bob Espey, CEO and president of Parkland.
Unifor sees it quite differently, saying it impacts jobs and the energy supply chain.
“The Burnaby refinery, which employs nearly 180 workers represented by Unifor Local 601, is a vital piece of B.C.’s energy supply chain. Unifor is calling on federal and provincial regulators to ensure binding commitments are in place to protect jobs and preserve the refinery’s operations as a strategic asset. Nearly one-third of the region’s domestically supplied gasoline and jet fuel comes from the refinery,” reads a statement from Unifor.
Gavin McGarrigle, Unifor’s western regional director, says this refinery was essential for the region’s fuel supply.
Over the last few years, we’ve written several stories when the price at the pump spikes, and organizations like Kalibrate have told us that refinery issues are generally a key reason why prices spike.
Unifor is now calling for action from the federal and provincial governments.
“Unifor is urging the federal and B.C. governments to review the sale and to secure binding commitments from foreign buyers of critical assets.”
In response to our request for comment, Adrian Dix, Minister of Energy and Climate Solutions, had the following to say:
“We value our relationship with Parkland, and they are a key player in BC’s economy and also contribute to the production of renewable fuels in our province, our key priority is to keep the refinery operating,” he said.
Dix added, “We are planning on meeting with Parkland, Sunoco to discuss future plans later in May. We will also be meeting with Unifor to discuss their concerns.”
We have contacted Parkland for a comment in response to Unifor’s concerns.