Crown justified the lockout by saying that union workers had committed acts of sabotage. Yet Crown invited the same workers, accused of sabotage, to return to work the next Monday provided they would agree to the company's contract terms. Several months after the lockout began, the National Labor Relations Board declared, "no finding has been made that any bargaining unit employees in fact engaged in such sabotage activities."
In what has become a familiar story, management replaced the union work force to recoup losses caused by years of corporate mistakes, and used phony charges of sabotage to conceal its real intentions.
At the time of the lockout, Local 4-227 of the Oil, Chemical & Atomic Workers International Union (OCAW) had withdrawn almost all of its contract demands. The local worked hard in negotiations to fend off Crown's proposals to eliminate over 40 percent of the work force, contract out skilled jobs at will, and gut seniority in the union contract. OCAW maintained that Crown's refinery, one of the oldest on the Houston Ship Channel, could not be operated safely with a significantly reduced work force or with inexperienced, less-skilled, contract workers.
Ask any serious oil company executive or analyst what they think of Henry Rosenberg and his two sons' business performance (the sons serve as vice presidents), and you might see a smirk appear on their faces.
"The management troubles for this company have been legendary -- the company is pathetic, just pathetic," said one analyst. (Baltimore Daily Record, February 1, 1996).
According to ratings established by Fortune magazine, Crown has consistently ranked near the bottom in performance among U.S. oil refinery companies throughout the decade. In one five-year period, Crown lost a staggering $132 million.
But Crown's poor performance could hardly be attributed to OCAW workers, who were awarded 22 commendations, just before the lockout, for setting all-time production records and reducing costs. Most attribute Crown's inadequate performance to colossal management blunders and lavish spending on executive perks, including a corporate jet.
In almost any other company, such a dismal performance would result in the removal of top management. But at Crown, with Rosenberg holding a controlling interest, OCAW workers became convenient scapegoats to cover up decades of incompetence and mismanagement.
Although Crown reported in 1997 its first profit in many years, much of it could be attributed to lower crude oil prices.
The lawsuit alleges that Crown supervisors created and distributed racist and sexist handbills, maintained a discriminatory promotion policy, and encouraged a workplace hostile to African-Americans and women.
One handbill, presented as evidence, is an application for "Jesse Jackson's Staff Positions," which asks "length of last jail term" and "number of convenience stores robbed?" Another handbill, masquerading as an employment application targeted at African-Americans, asks, "How many words do you jive in a minute?" Female workers, according to the lawsuit, were expected to give Henry Rosenberg a kiss after receiving a service award.
The virtual elimination of African-American and female hourly employees from Crown's Pasadena refinery after the lockout began shows how deeply embedded racism and sexism may be at Crown.
Although Henry Rosenberg brags about increased profits since the lockout began, neighborhood residents are paying a heavy price to line his deep pockets. One study, based on Crown's own data, documents a three-fold increase in pollution from the Pasadena refinery after the company dramatically cut the work force and replaced the skilled-union employees. Some of the health effects which may be linked to Crown's pollution include: cancer, convulsions, increased illness in children and the elderly, bronchitis, difficulty in breathing, and problems with skin, eye, and throat irritations.
Environmentalists -- including the Texans United Education Fund, the Lone Star Chapter of the Sierra Club, and the Natural Resources Defense Council -- have joined with residents from surrounding neighborhoods to file a "citizens' suit" to stop Crown's deadly pollution, Another neighborhood group is suing Crown for damages to the residents' health and property.
The AFL-CIO has launched a nationwide boycott of CROWN, ZIPPY MART, and FAST FARE gas stations and convenience stores. Crown's key market areas are located in Baltimore, Md; the Washington, DC area; Norfolk, Va; North Carolina; Alabama; and Georgia.
Informational leafletting of CROWN gasoline stations and stores continues. Locked-out OCAW members are spreading the word, wherever they go: DON'T BUY CROWN GASOLINE, DON'T SHOP AT ZIPPY MART OR FAST FARE.
In recent months, labor, women, civil rights, and environmental groups are signing on in increasing numbers to actively support the boycott. The National Black Caucus of State Legislators, the Interfaith Committee for Worker Justice, the Baltimore Interdenominational Ministerial Alliance, the Baltimore City Council, the Coalition of Black Trade Unionists, and the Jewish Labor Committee have all joined the effort to bring Crown and Henry Rosenberg to justice.
OCAW is also part of a broad-based environmental justice campaign in the neighborhoods located in the shadow of Crown's refinery to stop Crown and other industries from endangering residents' health.
Support the struggle against Crown's union-busting, racism, sexism, and environmental destruction.