U.S. refiners and the United Steelworkers union reached tentative agreement on a new three-year contract late Tuesday, Jan. 31, averting a potential strike that would have idled as many as 69 refineries.

The proposal includes pay increases of 2.5 percent in the first year and 3 percent in the second and third years, said union representatives.

One of the refineries that could have been idled by a strike was the ConocoPhillips Ferndale Refinery, which has about 400 full-time and contract employees. BP Cherry Point, which has a non-union workforce, was not impacted by these negotiations.

Typically with this type of contract, negotiations are done on two levels, nationally and locally, said Jeff Callender, a spokesman for the ConocoPhillips Ferndale Refinery. The local level negotiations at the Ferndale refinery, which tend to be about the local operations of the plant, are ongoing at this point.

The deal was reached hours before the midnight expiration of the previous contract. Negotiations started Jan. 14 in Austin, Texas, between the union representing 30,000 workers and Royal Dutch Shell Plc, which was bargaining on behalf of the companies. In the negotiations, USW was seeking higher wages, stronger protections for health and safety, and a safety officer assigned to each facility.

The deal still must be ratified by the workers. Union locals will meet to vote on the contracts within the coming weeks, said union spokeswoman Lynn Hancock. The 69 refineries represent approximately 64 percent of U.S. refining capacity.

Other companies involved include Valero Energy Corp., Exxon Mobil Corp., BP, Chevron Corp., Marathon Oil Corp., Sunoco Inc., Tesoro Corp. and PBF Energy Inc.

If no deal was reached, the union could have called a general strike or agreed to extend negotiations in 24-hour increments.