their contracts define how big of a raise they give over the course of the contract.
so if the company makes 100b in profit and the workers get a 3% increase that is due to the contract that they agreed on.
BP reports quarterly loss of $4.4 bln amid oil price drop
BP sounded a somber note on the oil industry Tuesday, saying producers may have to adjust to an extended period of lower prices, as the company reported a fourth-quarter loss of $4.4 billion and announced spending cutsBP plans to cut costs by as much as $6 billion this year, reducing exploration expenditures and postponing some projects, including development of the Mad Dog field in the Gulf of Mexico.
I'm done with you.
I think the oil companies will eventually work out a deal with the unions , the unions have a weak hand . Foolishly over played it. A smart oil company can lock in a great deal for their future with this union just give em 3 or 4 weeks...
Executives have made clear they will try to hold firm, saying they cannot afford to lift wages because crude prices have sunk 50 percent since June, eroding their profits.
Other executives have suggested Shell, acting as the lead negotiator for oil companies, gave away too much in negotiations held in years past.