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Tesoro Hawaii has filed a second notice with state officials saying the company plans to lay off 165 workers in three phases starting June 14 at its Kapolei refinery if the company can’t find a buyer for the facility.
Tesoro initially informed the state Department of Labor and Industrial Relations in February that it planned to close the refinery and begin laying off workers on May 1. But when that day arrived, Tesoro officials announced that they were postponing the layoffs while pursuing negotiations with a potential buyer or buyers that would continue operations at the state’s largest oil refinery.
In its second labor department filing on May 10, Tesoro reduced its estimate of the number of projected layoffs to 165 employees from the original estimate of 210. The refinery employs about 240 workers, according to a presentation the company made to prospective buyers.
Thomas Weber, manager of Tesoro’s Kapolei facility, said in the latest letter to the labor department that a sale of the refinery is still in play. He said the company filed the second notice to comply with a federal law regarding pending plant closures.
"However, various factors may still affect the timing of any employment separations," Weber wrote in the letter. "We will inform you of any significant changes in these plans as additional information becomes available," he wrote.
"In this regard, the company continues to have discussions with potential purchasers of its Kapolei assets, including the portion of the refinery which otherwise would have been partially closed."
The first wave of layoffs is tentatively scheduled to begin June 14 and last two weeks. The second wave is scheduled to start June 28, and the third on July 12.
Tesoro ceased refining operations at the Kapolei plant on April 30 and began the process of converting it into an import, storage and distribution terminal for refined petroleum products. The company also began "mothballing" activities to preserve the oil refining equipment for future use in the event the refinery is sold.